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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Commentary/New Issues
Corporate:
$500 MM, Kraft Foods, 6.75%, 2/19/14, Baa2/BBB+, +525bp$2.0 BLN, John Deere Capital, 2.875%, 6/19/12, Aaa/AAA, +184.9bp$500 MM, Goldman Sachs, 1.82%, 12/18/09, Aaa/AAA, +100bp
ABS:
$295 MM, FFCB, 2.37%, 12/23/10, +100bp
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