Trade Report Leaves Prices Little Changed On Eurodollar Bonds --- Special to The Wall Street Journal
LONDON -- Eurodollar bond traders weren't impressed with a report that the U.S. trade deficit narrowed in March, and fixed-rate issues finished the day little changed.</br></br>Other currencies, especially the Australian dollar, still are generating more interest in Eurobond syndication circles, although borrowers continue to issue dollar-denominated bonds with equity features.</br></br>Although the trade figure was encouraging from a U.S. economic standpoint, it fell right in line with market expectations.</br></br>"It wasn't a special number, and most people still don't see any attraction in the dollar markets," said a syndication specialist at one European bank.</br></br>Because European investors remain skeptical about the dollar, Eurodollar bonds won't become more attractive until the U.S. currency appears to stabilize, dealers say. A Eurodollar bond specialist at one large U.S. investment house said, "It's all based around the dollar at the moment."