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.