PRIMARY EUROSTERLING MARKET BOOMS DESPITE RATE CUT Two new eurosterling bonds were launched today, making a total of 10 new deals in the sector so far this month, as borrowers rush to cash in on a bull sterling market fueled by the strength of the pound and pre-budget euphoria. The Bank of England finally gave way to a 1/2 point cut in banks' base lending rates earlier today, but dealers said this had been largely discounted and was not likely to detract from the current popularity of sterling-denominated investments. "Sterling, in any shape or form, is flavor of the month and we're set to see many more eurosterling deals," one dealer said. Today's new eurosterling bonds were a 10-year, 100 mln stg deal for Sweden at 9-1/2 pct and priced at 101-1/4 pct, lead by Baring Brothers and Co Ltd and a 14 year 60 mln stg convertible deal for Storehouse Plc launched by SBCI International Ltd. "We thought we saw a proverbial flood of new deals with the 14 we had last month but it seems March will beat February hands down with 10 already," one eurosterling specialist said. "Optically, psychologically, these single figures are much more attractive for the borrower. Eurosterling looks like a cheap and attractive way to raise your money," he added. This accounts for the wide variety of borrowers who have tapped the sector recently, ranging from sovereigns such as the Kingdom of Sweden today, continental banks including Commerzbank and Deutsche Bank and British corporations. Another U.K. Merchant bank analyst noted that the current vogue for eurosterling enabled several corporate borrowers last month to offer paper priced below comparative gilt yields. A Storehouse official confirmed that the issue was aimed at Swiss and German investors who were showing good interest. This is the first entry into the long term international capital markets by Storehouse, British designer Terence Conran's retail conglomerate which incorporates U.K. Chain stores Mothercare, British Home Stores and Habitat. "We have been considering the move for quite some time now and the current strength of the eurosterling sector provided the perfect opportunity and spur for us to finally tap the market," Lance Moir, corporate treasurer at Storehouse Plc told Reuters.