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HAVE PEOPLE forgotten about the FOMC? Bond markets have put in stunning performances over the past couple of weeks, with the DTB March Bund future reaching a contract high several times and the US long bond flirting with the 6% yield level. Much of the strength has been driven by renewed troubles in Asia, particularly Korea, and in world stockmarkets. The flight to quality on Thursday following Korea's overnight downgrade spurred government bonds in the US and Europe to new heights, and safe haven currencies such as the Swiss franc are again in vogue.

STRONG demand for French retailer Groupe André's debut this week allowed Crédit Lyonnais and Merrill Lynch to increase the size from Ffr800m to Ffr900m, making it the largest French franc high yielder to date. The deal surfaced on Tuesday at the bottom end of initial price talk of 150bp to 180bp over Pibor. "The pricing demonstrates the strength of demand," said a syndicate official at Crédit Lyonnais. "Even at 150bp over we had to scale back allotments."

* Abbey National Treasury Services plc Guarantor: Abbey National plc

Luxembourg francs

* National Australia Bank Ltd Rating: Aa3/AA

* World Bank Rating: Aaa/AAA

* CE Electric UK Funding Co Guarantor: AMBAC

* Municipal Housing Finance Guarantor: Municipality Guarantee Board

* Kommunekredit Rating: Aa1/AA+

US dollar straights * GE Capital Retailer Financial Services Co

* BACB (Jersey) Ltd Guarantor: British Arab Commercial Bank Ltd, London

THE Republic of Argentina successfully launched a $500m five year Yankee bond this week, proving it could access liquidity even in current poor market conditions, but still leaving investor appetite for plain vanilla emerging market new issues untested. The so-called Spread Adjusting Notes (Spans) transaction, sole led by Merrill Lynch, was increased from an original $300m as cross-over investors lapped up a coupon resetting structure that offered them Argentina's high spreads but with the lower volatility of a five year Treasury note. On Thursday the offering was trading in line with the five year Treasury, as expected.