Activity on the Lebanese Eurobond market was perhaps non-existent but at least extremely limited as most prices stabilized after being marked down by a percentage point or two last week. Sovereigns witnessed some supply for the Sep-03 floating rate note, but demand was not forthcoming. Corporates, needless to say, were less than active, with both demand and supply lacking.
Hariri’s visit to France and the $458 million pledge to strengthen the government’s financial policy did not help investors to participate, in light of the current crisis in Turkey and the low prospects for a nearby peace in the region.
US Treasuries ended an extensive week of gains by falling on Friday, March 2, as investors booked profits after Federal Reserve Chairman rejected suggestions of a dramatically slowing US economy, thus reducing expectations for a further cut in interest rates before the Fed’s next meeting. The Conference Board reported that its consumer confidence index fell to 106.8 in February, down from a revised 115.7 in January, its lowest level in more than four years.
Moreover, the National Association of Purchasing Management (NAPM) reported its manufacturing index stood at 41.9 in February, only slightly above its January decade-low of 41.2, recording a contraction for the seventh straight month. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
