CREDIT REPORTS

Treasuries:

Treasuries were little changed Friday as evidence of poor retail sales was the focus amid thin post-holiday trading. Discounts by retailers failed to prevent a spending drop of as much as 4 percent during the final two months of the year. The market held higher through the day as the weeks size that did show up, showed up to buy. Treasuries posted their weekly loss in almost two months as the U.S. sold record amounts of two and five year notes during a holiday week marked by lighter trading than usual. Treasuries will look ahead to another shortened and data impaired week. The calendar is empty through Tuesdays Chicago PMI and consumer confidence.

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Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

All statistical data is sourced from Bloomberg Financial Markets New Issues larger than $250mm.   The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasury prices traded mostly flat ahead of the Christmas holiday Wednesday, after government reports on joblessness and consumer spending pointed to ongoing strains in the U.S. economy. Initial claims for unemployment benefits rose 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, marking the highest level seen for first-time claims since 1982. A separate report showed a decline of 0.6 percent in consumer spending during November. Another government report indicated durable-goods orders fell 1% last month, less than the 3% drop that had been forecast. A measure of consumer inflation excluding energy and food prices was flat in November, as predicted. A deteriorating economic outlook and a spreading contagion in financial markets that triggered a massive flight to safety among investors have led Treasuries of all maturities to return 14.5% this year. The markets are closed tomorrow, Merry Xmas.

Municipals:
Alaska revived a $244 million bond sale and led fixed-rate borrowers in the U.S. municipal market this week as yields fell to the lowest since November. Alaska took advantage of the rally as well as the drop in issuance, getting more than enough orders to complete the bond sale, which was managed by RBC Capital Markets. Municipal borrowers sold about $320 million during a week abbreviated by tomorrow’s Christmas holiday, down from $1.7 billion last week. The Bond Buyer 20, a weekly index of yields on 20-year general obligation securities, fell to 5.33 percent. The secondary market was quiet. I didn’t receive the final MMD.
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Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Short-term Treasuries rose modestly Tuesday after reports showed new and existing home sales slowed in November. New home sales fell 2.9 percent to seasonally-adjusted annual rate of 407,000 units, the lowest level in more than 17 years. Existing home sales, which make up the bulk of the market, declined almost 9% to 4.49 million pace, worse than the 4.90 million rate predicted. Sales of previously owned homes in the U.S. fell 8.6 percent in November, more than forecast. Debt maturing in more than five years was, in part, under pressure from the Treasury Department’s auction of a record $28 billion in five-year notes. The government sold the debt at a yield of 1.539 percent. Bidders offered $2.06 for every dollar being sold, the lowest since September. Separately, the University of Michigan/Reuters consumer sentiment report showed confidence was slightly better than expected this month. Tomorrow has durable orders and initial jobless claims along with personal income/spending.

Municipals:
U.S. municipal bonds rose for a sixth day as investors sought higher-yielding alternatives to taxable Treasuries. Yields on top-rated 30-year general obligation bonds slid two basis points, or 0.02 percentage point, to 5.54 percent. Long-term state and local bonds, whose yields reached highs versus Treasuries last week, are attractive after the Federal Reserve cut short-term interest rates to near zero. That has led people to start looking at alternative investments. When you get away from Treasuries, the second safest product is munis. The secondary was quiet. I was not posted on trades. The final read on the MMD was 2009: yields were unchanged; 2010-2011: yields were lowered by 3bp; 2012-2021 yields were lowered by 5-7 bpts; 2022-2029 yields were lowered by 5-6 bpts; 2030-2038 yields were lowered by 3-5 bpts.
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Corporate: Nothing
ABS: Nothing
Agency: Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries:
Treasury prices declined Monday, sending yields higher for a second straight session, after the government held the first of two record-size auctions of short-term securities. The Treasury Department sold $38 billion in 2-year notes at a yield of 0.922%, the lowest yield ever for the government. Indirect Bidders, bought 30.4 percent of the two year notes sold, compared with 34.9 percent in the prior auction. Primary dealers bought 68.2 percent, compared with 63.7 in the last sale. Direct bidders purchased 1.4 percent. The 2-10 year yield spread held flatter at 127 with the long stuff dragging a little less. A sale of $27 billion of Treasury three month bills drew a yield of 0.04 percent, while a $27 auction of six month bills sold at 0.285 percent, indicating a continued demand for the safest debt. Tomorrow’s calendar has Q3 GDP revisions , home sales and UofM revisions.

Municipals:
U.S. municipal bond sales are headed for a decline of more than 9 percent this year, as the pressure to refinance adjustable-rate debt after bond-insurer downgrades and a renewed reliance on individual investors limited issuance. $390 billion versus $430 billion in 2007, down 9.3 percent. Municipal issuers are planning less than $500 million of fixed-rate bond sales the next two weeks, as U.S. bond markets close for Christmas and New Year’s Day and observe abbreviated days Dec. 24 and Dec. 31. The secondary market was very light. I was in touch with PR 5 ½ % 7/16 at 98 7/8 – 99.25. I was posted on NYC 5% 8/24 @ 5.77. Dorm Sloan 5% 7/27 5.70. Final read on the MMD was 2010-2011: yields were unchanged; 2012-2014: yields were lower 0-3bp; 2015-2038: yields were unchanged.
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Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries: Treasuries fell Friday, flattened by a bout of optimism on the U.S. economy after the White House unveiled a rescue package for Detroit’s automakers and ahead of record auctions next week. The White House agreed to extend $13.4 billion in loans to troubled Detroit auto makers, with another $4 billion likely available in February, citing the need to avoid “disorderly liquidation” during an already troubled economic period. The money will be drawn from the Troubled Asset Relief Program, according to the administration, and will allow the companies to keep operating until March. The Treasury will auction a record $38 billion of two year notes December 22nd and an all time high $28 billion of five year securities on December 23rd. The 2-10 year yield spread held flatter at 138 but well off midday’s 133. The shortened week ahead brings a light calendar with final Q3 GDP on Tuesday and some housing sales.

Municipals: Borrowing costs for U.S. state and local governments eased by the most in eight weeks, as long-term offerings dropped in the market’s last full trading week of 2008. Philadelphia, California’s San Bernardino Community College District and other municipal borrowers sold about $1.6 billion of fixed-rate bonds last week, down from $6.2 billion last week. The weekly Bond Buyer 20 index of tax-exempt yields on 20year general obligation bonds dropped 39 basis points, or 0.39 percentage point, to 5.46 percent yesterday, the biggest decrease since Oct. 23. the secondary market activity was very. I was posted on NYS EFC 5% 9/27 98.00, NY Urbn 4 ½ 3/37 6.00.The final MMD was 2011-2020: yields were lower 0-3bp; 2021-2023: yields were lower 1-4bp; 2024-2026: yields were lower 2-5bp; 2027-2031: yields were lower 3-6bp; 2032-2038: yields were lower 4-8bp.
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Commentary/new Issues
Corporate:
$6.75 BLN, Bank of America, Aaa/AAA, 3 part $500 MM, 12/23/10, +3ML+18bp; $3.75 BLN, 1.70%, 12/23/10, +97bp; $2.5 BLN, 6/22/12, +3ML+38bp

ABS: $1.0 BLN, VALET 08-2, ABS

Agency: Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries: Treasuries continued to advance on Thursday, keeping yields near record lows, with economic reports still painting a bleak picture of the economy and with fixed-income assets benefiting from the Federal Reserve cutting interest rates to record lows. First-time claims for state unemployment benefits dropped 21,000 to 554,000 in the week ended Dec. 13, easing back part of a surge in the prior week. The Philly Fed diffusion index rose to negative 32.9 in December from negative 39.3 in November. The reading in November was the worst since October 1990. Treasuries hit highs as General Electric Co.’s debt rating outlooks and those of its GE Capital finance arm were changed to negative from stable by Standard & Poor’s. The Treasury will auction a record $38 billion of two year notes December 22nd and an all time high $28 billion of five year securities December 23rd. The curve was sticking to the flattening track with the 2-10 year yield spread heading out near 140, flattest since mid-September. Economic calendar is empty tomorrow.

Municipals: U.S. municipal bonds extended their biggest gains since October. Municipal borrowers including Chicago, the University of San Francisco and Austin, Texas, delayed until January offerings that had been set to go to market as soon as this month. Bond dealers have scheduled “a large primary calendar” for the first two weeks of 2009, when principal and interest payments as well as auction-rate settlement money may draw renewed interest from investors. Yields on top-rated 30-year general obligation bonds fell 12 basis points, or 0.12 percentage point, to 5.63 percent, this week’s 22-basis- point drop was the biggest in 10-weeks. I was in touch with LIB 5 ¼ % 35 8:00-7.75. I was posted NYC Wtr 4 ¼ % 6/33 @ 6.1, METS 5% 1/36 @ 7.92. The read on the MMD was as follows 2011: yields were lower 2-4bp; 2012-2013: yields were lower 4-7bp; 2014: yields were lower 7-10bp; 2015-2017: yields were lower 8-11bp; 2018-2019: yields were lower 9-12bp; 2020-2038: yields were lower 10-15bp
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Commentary/New Issues
Corporate:
$2.0 BLN, United Mexican States, 5.95%, 3/19/19, Baa1/BBB+, +390bp$600 MM, Energy Transfer Partners, 9.70%, 3/15/19, Baa3/BBB-, +878bp$7.75 BLN, JPMorgan Chase, Aaa/AAA, 3 part $3.0 BLN, 6/22/12, +3ML+38bp; $3.0 BLN, 2.125%, 6/22/12, +121.7bp; $1.75 BLN, 2.625%, 12/1/10, M/S +18bp
ABS:
Nothing
Agency:
Nothing
New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries: Treasuries pared their gains Wednesday afternoon, with shorter-term securities reversing to fall lower, after a burst of risk appetite took some of the momentum from the recent rally in government debt. The 10-year Treasuries rallied as much as 1.1%, sending yields to as low as 2.08 percent. The day’s low yields were the weakest posted by the benchmark note since active trading in the security began in the early 1960s. The 30 year yield dropped 13 basis points to 2.65 percent after touching 2.5816 percent, the lowest since sales of the security began in 1977. Rates on one month bills were minus 0.01 percent, the second straight day the shortest government securities have offered a negative return. Many analysts warn, however, that the Fed’s aggressive moves could have negative repercussions: One main concern is inflation, which is often a byproduct of lower interest rates. Economic news for tomorrow - initial jobless claims and leading indicators.

Municipals: U.S. state and local government bonds rallied the most since last month as the volume of long- term debt offerings diminishes during the last full week before the Christmas holiday. Municipal borrowers have sold less than $1 billion of long- term, fixed-rate bonds this week, compared with $6.2 billion all of last week. I was in touch 5 ¼ % 35 8.30-8.25, LI Pwr 5 ¾ % 4/33 98.50-99.50. I was in touch CA Dept Wtr 5 ½ % 5/11 . the total-return gauge is still down 8.6 percent, the worst year since its creation in 1989. State and local debt also gained amid speculation that the Federal Reserve would take further steps to ease credit markets and indirectly help municipals. The final MMD was 2009: unchanged; 2010-11 yields were lower by 5 bts; 2012-16 yields were lower by 10-14 bpts; 2017-33 19 bpts; 2034-38 yields were lower by 20-bpts.

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Chart

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries: Long-dated Treasuries extended their gains Tuesday, further crushing yields to historic lows, after the Federal Reserve slashed its target rate to as low as zero and repeated its intent to lower borrowing costs by buying bonds. The Federal Open Market Committee Tuesday afternoon established a target range of zero to 0.25 percentage for its fed funds rate, far lower than the cut to 0.5 percentage expected by most economists and amounting to as much as a 1-percentage point drop from its prior target rate. The FOMC also reiterated comments from Fed Chairman Ben Bernanke and other senior officials that the U.S. central bank would use methods to accelerate economic growth, particularly by buying debt to lower other market rates. Also helping bonds Tuesday, a report showed U.S. consumer prices plunged 1.7 percent in November, the fastest pace since 1947. Tomorrow has an empty data and Fed calendar.
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market report chart

CREDIT MARKETS

Treasuries:Treasury prices rallied Monday, sending yields lower, as investors bought up long-dated securities ahead of expectations the Federal Reserve could soon buy Treasuries, with another round of dismal economic news also supporting bids. Demand for Treasuries pushed yields on debt maturing in 10 years or more closer to those of shorter-term notes for a third day as traders bet the Fed will commit to keeping long term borrowing costs low. Treasuries on Monday also benefited from investors’ appetite for safe-haven assets after reports emerged of widespread investment losses from the alleged Ponzi scheme run by Bernard Madoff. The Fed opened a two day meeting as policy makers consider whether to lower interest rates or pursue other measures as a way of spurring economic growth in the worst financial crisis since the Depression. The difference in yield between two and ten year notes, was 1.78 percent compared with 1.81 percent on December 12th. Tomorrow has CPI and housing starts/building permits along with the FOMC decision.

Municipals: U.S. state and local government borrowers plan to offer about $2 billion of bonds this week. Florida Water Pollution Control Financing Corp. will be among the largest issuers with a $201 million AAA bond sale to help pay for work on local wastewater systems. Philadelphia took orders from individual investors on its $185 million in GO bond offering. Institutional pricing is on Tuesday. Yields on even the highest rated 30-year general obligation bonds reached 5.58 percent, about 2.8 percentage points more than the comparable-maturity taxable Treasury benchmark. I was in touch with PR FSA at 6.25-6.20, PR AGO insured 5.50 29 at 6.80-6.75. I was posted on CA 5% 9/19 @ 5.60, Dorms 5% 2/24 @ 6.15, PR Infrac 5 ½ % 7/19 @ 7.40. The MMD was unchanged from Friday’s close.

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Commentary/New Issues
Corporate: $1.25 BLN, United Technologies, 6.125%, 2/1/19, A2/A, +360bp
$2.0 BLN, Proctor & Gamble, 4.60%, 1/15/14, Aa3/AA-, +310bp
ABS:Nothing
Agency: Nothing
New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

Toussaint Capital Partners, L.L.C (TCP) is a registered broker/dealer and member NASD/MSRB/SIPC. No part of this report may be reproduced in any manner without the express written permission of its author and any unauthorized dissemination is strictly prohibited. Any information represented in this report is for informational purposes only. All opinions in this report are subject to change without notice, and are not intended as an offer or a solicitation to buy or sell any securities. Any views or opinions presented in this report are solely those of the author. The owners and employees of TCP or affiliates may also be conducting trades based on these ideas. While the information contained in this transmission is believed to be reliable, no representation or warranty, whether expressed or implied, is made and no liability or responsibility is accepted by TCP or its affiliates as to the accuracy or completeness thereof. The author has not independently verified such information. TCP, its officers, directors, employees, agents, independent contractors or consultants may have positions in securities, options or commodities referred to herein and may, as principal or agent, buy and sell such securities, options or commodities. They also may hold positions contrary to the ideas presented in the report as market conditions may warrant. TCP does not make markets in any of the securities mentioned herein and may from time to time perform investment banking services for any of the securities mentioned herein. Additional information on the securities discussed herein is available upon request

CREDIT MARKETS

Treasuries: Treasuries advanced for a sixth week, pushing yields to record lows, as U.S. automakers flirted with bankruptcy, renewing concern the recession is deepening. Yields plunged after the Senate late yesterday rejected a bailout of General Motors Corp. and Chrysler LLC. The Bush administration later said it may aid the companies, possibly using the Troubled Asset Relief Program. Two year note yields dropped three basis points to 0.76 percent, the lowest since 1975. Traders’ expectation for inflation over the next decade fell to the lowest in almost three weeks. The curve saw another mixed session with the 2-10 year yield spread heading out at 181 well off the week’s steepest levels that matched those seen at the start of the month. The economic calendar is light, anchored by FOMC, housing starts/building permits & CPI and flanked by NY Empire, industrial production and jobless claims, leading indicators and Philly Fed.

Municipals: U.S. tax-exempt borrowers led by Harvard University sold about $5.7 billion of bonds and investors pulled $1 billion out of municipal mutual funds, driving benchmark yields to the highest since October. Harvard, the Maryland Transportation Authority and New York City and other state and local issuers pushed fixed-rate bond sales to their third heaviest week since September. Top-rated 10-year tax-exempt bond yields were little changed today after rising to an average 4.28 percent and The Bond Buyer 20, a weekly index of yields on 20-year general obligation debt, rose more than a quarter-percentage point to 5.85 percent. The calendar is very light with new issuances with Florida Water Pollution being the largest issuer with $201M bond offering expected this week. I was in touch with PR AGO 5.5% 29 at 6.75-6.66. I was posted on NYS TWY 5% 4/15 @ 104.00, NYC WTR 5% 39 @ 6.48. We didn’t get the final read on the MMD.

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Commentary/New Issues
Corporate:Nothing
ABS:Nothing
Agency: Nothing
New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerinmentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets
Toussaint Capital Partners, L.L.C (TCP) is a registered broker/dealer and member NASD/MSRB/SIPC. No part of this report may be reproduced in any manner without the express written permission of its author and any unauthorized dissemination is strictly prohibited. Any information represented in this report is for informational purposes only. All opinions in this report are subject to change without notice, and are not intended as an offer or a solicitation to buy or sell any securities. Any views or opinions presented in this report are solely those of the author. The owners and employees of TCP or affiliates may also be conducting trades based on these ideas. While the information contained in this transmission is believed to be reliable, no representation or warranty, whether expressed or implied, is made and no liability or responsibility is accepted by TCP or its affiliates as to the accuracy or completeness thereof. The author has not independently verified such information. TCP, its officers, directors, employees, agents, independent contractors or consultants may have positions in securities, options or commodities referred to herein and may, as principal or agent, buy and sell such securities, options or commodities. They also may hold positions contrary to the ideas presented in the report as market conditions may warrant. TCP does not make markets in any of the securities mentioned herein and may from time to time perform investment banking services for any of the securities mentioned herein. Additional information on the securities discussed herein is available upon request.