THE BOND markets were rocked by another week of volatility, with professionals viewing the markets not so much as unpredictable, but almost as unfathomable. The health of the bond markets now appears to be inextricably linked to movements on the Dow. On Monday and Tuesday, a sharp rise in US equities brought swap and bond spreads in by several basis points, creating a firmer tone for the primary market, and prompted a number of issuers to seek access to the market.
September 11, 1998