Investors looking for some relief to the tightening bias that has taken hold on European pricing found a bit of comfort in the slight widening seen on secondary spreads seen last week, as market sources reported that bids on triple-A paper trading as much as three basis points wider. On the primary front, triple-A RMBS spreads shifted outside January levels by up to two basis points.

Market analysts attribute the recent movement to corporate bond market spread volatility mixed with a growing issuance calendar - over 10 billion (US$13 billion) is actively marketing in the primary market. Year-over-year volume for 2005 is at 70.7 million ($91.3 million) and, for the first time this year, on par with levels recorded last year.

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