Bankers have dismissed concerns that the fixed-income market boom, which saw bond yields rally spectacularly after the Iraq war last April, will halt this year.

While yields underwent a huge correction in 2003, outstanding corporate bond redemptions of around €50bn ($61bn) in the first three months of 2004 will leave room for a further rally, they say. Julia Peach, global head of credit research at ABN Amro, said: "A strong bid for reduced new issuance will characterise the first half of 2004."