CREDIT MARKETS
Treasuries:
Short-term Treasuries rose modestly Tuesday after reports showed new and existing home sales slowed in November. New home sales fell 2.9 percent to seasonally-adjusted annual rate of 407,000 units, the lowest level in more than 17 years. Existing home sales, which make up the bulk of the market, declined almost 9% to 4.49 million pace, worse than the 4.90 million rate predicted. Sales of previously owned homes in the U.S. fell 8.6 percent in November, more than forecast. Debt maturing in more than five years was, in part, under pressure from the Treasury Department’s auction of a record $28 billion in five-year notes. The government sold the debt at a yield of 1.539 percent. Bidders offered $2.06 for every dollar being sold, the lowest since September. Separately, the University of Michigan/Reuters consumer sentiment report showed confidence was slightly better than expected this month. Tomorrow has durable orders and initial jobless claims along with personal income/spending.
Municipals:
U.S. municipal bonds rose for a sixth day as investors sought higher-yielding alternatives to taxable Treasuries. Yields on top-rated 30-year general obligation bonds slid two basis points, or 0.02 percentage point, to 5.54 percent. Long-term state and local bonds, whose yields reached highs versus Treasuries last week, are attractive after the Federal Reserve cut short-term interest rates to near zero. That has led people to start looking at alternative investments. When you get away from Treasuries, the second safest product is munis. The secondary was quiet. I was not posted on trades. The final read on the MMD was 2009: yields were unchanged; 2010-2011: yields were lowered by 3bp; 2012-2021 yields were lowered by 5-7 bpts; 2022-2029 yields were lowered by 5-6 bpts; 2030-2038 yields were lowered by 3-5 bpts.
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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