Sovereign Bond Spreads:  =20  Significant New Issuance - Commentary:  ?=09The emerging markets started the week on an extremely quiet note as inv= estors awaited more news from Argentina, in particular, on possible IMF sup= port for the country.
The situation started to improve on Tuesday night aft= er Domingo Cavallo's speech intended to support domestic confidence, in whi= ch he reiterated that the Argentine government would not default on its deb= t payments.
He also announced some special measures designed to reduce the = government's debt burden, such as an acceptance of bonds as payment for pas= t-due taxes and bond coupons for future tax liabilities.
This announcement,=  together with positive clues from the IMF about the possibility of a US$6.= 9bn disbursement to Argentina, helped the market to rally around 2.5 points= .
However, the continued fall of international reserves and private sector = deposits, evidenced by the latest data release, did not contribute to reviv= e investor confidence and pulled the market down by around 1 point.
In Turk= ey, the week was fairly busy with prices rising on the back of the successf= ul T-Bill auction and as a result of a technical short squeeze.
Real money = accounts and local banks were active buyers of Turkish bonds helping the Tu= rkey 2030 benchmark to break through an important resistance level of 80.
R= ussian market activity picked up on the positive news from Argentina, but t= he rally was not sustained and Russian bonds closed almost unchanged on the=  week.
Central and Eastern European assets had a positive week gaining arou= nd 0.25-0.50 points in price.
Overall, the general sentiment in the emergin= g debt markets has improved but is still very much subject to stabilisation=  in Argentina.
The EMBI+ Index tightened around 20 bps on the week to at +8= 96 bps level on Friday.
?=09The United Mexican States (Baa3/BB+) placed a US$1.5 bn 8.30% issue due=  08/2031 on Monday.
The bond was priced at a spread of +335 bps over Treasu= ries.
The fact that a Latin American issuer was able to successfully place = such a large transaction is a good sign that the impact of the Argentine cr= isis is limited and has not shut down the primary market for borrowers.
?=09The Republic of Latvia's (Baa2/BBB) credit rating outlook was raised by=  Standard & Poors from "Stable" to "Positive" reflecting an improved spendi= ng control and better perspective for GDP growth.

Sovereign Bond Spreads, 10 August 2001
Sovereign Bond Spreads: =<NUMBER> Significant New Issuance - Commentary: ?=00The emerging markets started the week on an extremely quiet note as inv= estors awaited more news from Argentina, in particular, on possible IMF sup= port for the country.
The situation started to improve on Tuesday night aft= er Domingo Cavallo's speech intended to support domestic confidence, in whi= ch he reiterated that the Argentine government would not default on its deb= t payments.
He also announced some special measures designed to reduce the = government's debt burden, such as an acceptance of bonds as payment for pas= t-due taxes and bond coupons for future tax liabilities.
This announcement,= together with positive clues from the IMF about the possibility of a US<CUR><NUMBER>.= 0bn disbursement to Argentina, helped the market to rally around <NUMBER> points= .
However, the continued fall of international reserves and private sector = deposits, evidenced by the latest data release, did not contribute to reviv= e investor confidence and pulled the market down by around <NUMBER> point.
In Turk= ey, the week was fairly busy with prices rising on the back of the successf= ul T-Bill auction and as a result of a technical short squeeze.
Real money = accounts and local banks were active buyers of Turkish bonds helping the Tu= rkey <NUMBER> benchmark to break through an important resistance level of <NUMBER>.
R= ussian market activity picked up on the positive news from Argentina, but t= he rally was not sustained and Russian bonds closed almost unchanged on the= week.
Central and Eastern European assets had a positive week gaining arou= nd <NUMBER>-<NUMBER> points in price.
Overall, the general sentiment in the emergin= g debt markets has improved but is still very much subject to stabilisation= in Argentina.
The EMBI+ Index tightened around <NUMBER> bps on the week to at <NUMBER>= <NUMBER> bps level on Friday.
?=00The United Mexican States (Baa0/BB+) placed a US<CUR><NUMBER> bn <NUMBER>% issue due= <NUMBER>/<NUMBER> on Monday.
The bond was priced at a spread of <NUMBER> bps over Treasu= ries.
The fact that a Latin American issuer was able to successfully place = such a large transaction is a good sign that the impact of the Argentine cr= isis is limited and has not shut down the primary market for borrowers.
?=00The Republic of Latvia's (Baa0/BBB) credit rating outlook was raised by= Standard & Poors from "Stable" to "Positive" reflecting an improved spendi= ng control and better perspective for GDP growth.
tu rkey number default deb sovereign bond spreads inv estors awaited continued fall credit rating imf sup port news argentina sector deposits evidenced positive reflecting improved