The euro's entry on the international bond market has been a resounding success. In the first quarter of 1999, international bond issues in dollar and in euro matched each other in market share: both stood at 44%. This result is remarkable as, before EMU, the combined issues of its participants never exceeded 36%.
    Beyond it performance in volume terms, the following positive developments should also be mentioned: an increase in the number of issues of 1 bn euro and more, which bodes well for the market's liquidity; an increase in the number of corporate issues, sign of an accelerating trend towards disintermediation; more newcomers on the issuer side while on the investor side an increase in Japanese buying was noted. U.S. demand remained stationary.
    On the exchange markets, another noteworthy development is taking place: the euro is becoming a "vehicle" currency. In other words, the euro has started being used as a "gobetween" in the buying/selling of currencies on the exchange markets. Today this is still very much a U.S. dollar prerogative.