2000-03-28 Bounce from early morning sell-off

Daily Brady Bond Trading Commentary

Tuesday March 28, 2000 

Most emerging markets debt bounced back from an early morning sell-off, though Argentine assets lagged.

The market closed on a late upswing after Brazil's COPOM announced it was cutting the selic rate by 50 bps to 18.50%. Despite the positive comments flowing out of the BID meetings in New Orleans, Latin debt prices have been mostly stagnant as trading volumes remain very low.

Global financial markets took on a negative tone early Tuesday, following cautious comments on U.S. equities by a prominent Wall Street strategist. Oil prices slumped as well as OPEC ministers struggled to agree on production increases.

Iran's refusal to accede to the proposed 1.7 mln bbl/day increase apparently drew the conference to a close with no agreement in place. But one minister indicated that the increase will be achieved without Iran's participation.

Contributed by

Credit Lyonnais Securities (USA) Inc.


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