THE debt-raising subsidiary of the German export credit and development bank may delay its dragon bond market debut for up to two weeks, according to joint underwriters Lehman Brothers. Howard Pollack, managing director of Lehman Brothers in Hong Kong, said KFW International Finance, was ready to issue around US$300 million of five-year bonds as early as tomorrow. ''The timing has not been announced,'' he said, ''it could be [tomorrow] but it could be a week later or a week after that.'' ''The bond market is unsettled all over the world and KFW is a very selective borrower,'' Mr Pollack said. The search for tight spreads over US Treasury bills might keep KFW out of the market until it is perceived to have settled. Mid-February's 25 basis point rise in the Fed Funds rate, the interest which US banks charge each other, triggered a massive bond market sell-off with yields rising right across the yield curve. Many market participants believe the market has overshot on the basis of a tiny rise in interest rates but there has been little sign of prices picking up again. Mr Pollack said the Euromarkets had seen issues postponed over the last 10 days while Hong Hong had been passed over. ''It is something that is specific to borrowers, so you can't make generalisations,'' he said. ''KFW would like to see its inaugural issue priced aggressively,'' he said. Meanwhile, supra-national telecommunications provider Intelsat has issued US$200 million in the Dragon market. The 10-year issue has a coupon of 6.625 per cent and was issued at 99.84 giving a yield of 6.647 per cent, currently 48 basis points away from the 10-year US treasury which is yielding 6.16 per cent. The lead-manager and bookrunner was Goldman Sachs.