2000-03-20 Positive tone
Daily Brady Bond Trading Commentary
Monday March 20, 2000
Although the tone was positive, there was very little movement ahead of the FOMC Meeting tomorrow.
While the market is expecting 25bp, there is a small group who believe that there might be a 50bp and this would be a surprise. The markets have discounted 25bp but that any greater attempt to slow the US economy would adversely impact the Emerging Markets.
Most Ministers of Finance and Governors of Central Banks are making their way to New Orleans to attend the annual Inter-American Development Bank Meeting.
Some traders had hoped that Ecuador would make a statement on their debt situation but Finance Minister Jorge Guzman announced today that talks regarding the default on Ecuador's Brady debt cannot begin for three to five months.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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