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Brazil demonstrated its new, conservative approach to the international debt markets this week by increasing its blow-out Eu700m three year debut by just Eu100m. The tap on the existing issue by lead managers Credit Suisse First Boston and Dresdner Kleinwort Benson was launched at 595bp over the July 2002 BTAN, 5bp tighter than the original issue. Demand for the additional bonds was so strong that the price surged two points before settling back to around 101.

BRITISH Steel, after raising Eu400m via a Eurobond this week, has cut its requirements from the loan market from Eu2.25bn to Eu1.85bn at the most. The arranging roles for the loan have yet to be mandated and deal's terms are undecided. Most observers believe that the arranging banks will be ABN Amro, Citibank, Dresdner and HSBC. Some 18 banks are thought to have bid.

Market commentary: Compiled by Jim Webber,

Citibank fulfilled months of eager expectation by issuing its first credit card securitisation in euros this week. Bookrunner Salomon Smith Barney and joint leads CDC Marchés and WestLB launched Eu1bn of five year fixed rate bonds in a bid to set a European benchmark for the US issuer's credit.

Eurobond issuance from Croatian borrowers looks set to resume in the coming months after the Kosovo-inspired hiatus in new issue activity. Investor sentiment towards the country has improved sharply since the end of Nato's military action against Serbia. The trading spread on the Baa3/BBB- rated sovereign's Eu300m 7.375% seven year euro bond from late February has tightened in to 368bp over Bunds at Thursday's close in London - from as wide as 615bp over at the height of the Kosovo crisis.

Plans for a debut international bond offering by the Czech Republic have been put on ice. Czech finance officials met European fund managers this week as part of their preparations for an expected Eu300m minimum seven year issue - set to be the inaugural deal off the recently established Eu2bn Euro-MTN programme, arranged by Morgan Stanley Dean Witter.

Deutsche Telekom and British Telecom (BT) have approached Euroloan houses with a possible view to raising finance for big- ticket acquisitions.

CHASE MANHATTAN, Chase Securities, Deutsche Bank and Deutsche Bank Securities have overseen the signing of the immensely successful $17bn senior debt package of revolving credits for DaimlerChrysler. Nearly $23.5bn was raised from 49 banks, an oversubscription of 37%. The loan, however, was not increased.

Dollar swap spreads began the week trading at 100bp over the 10 year Treasury - an historic high. On Tuesday, they retraced some ground and traded down to 95bp, but by Wednesday the widening had started again. Considerable paying by a number of investment banks, led by Goldman Sachs, according to dealers, drove swap spreads higher again. By the end of the week, the 10 year market was quoted at 98.25bp-98.75bp. Dollar swaps have held on to these all-time highs for longer than was the case in the financial market crises of August last year.

Czech Republic Investicni a Postovni Banka has closed its one year revolver refinancing after failing to raise the launch amount. It went to the market for $70m but has had to settle for $57.5m after thin interest from the Euromarket. The borrower was looking for between $50m and $70m, and so has reached its lower target.