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
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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
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