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