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