2000-05-18 Debt posted mixed results

Daily Brady Bond Trading Commentary

Thursday May 18 2000 

Emerging markets debt posted mixed results Thursday on low volume and continues to trade in a range-bound fashion, led by gyrations in equity markets.

Nether debt nor equity markets can escape the fear of higher U.S. interest rates for the moment, and further selling pressure is likely to ensue unless some very encouraging economic data materializes. Encouraging news on the local front in Brazil was a record primary budget surplus in March of R$ 5.66 billion (US$3.1 billion), although the 12-month nominal deficit reading worsened. The Brazilian government also announced that it was cutting R$7.5 billion from its discretionary spending as approved in the 2000 budget.

Contributed by

Credit Lyonnais Securities (USA) Inc.

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