CREDIT MARKETS
Treasuries:
Treasury prices were little changed Tuesday after Federal Reserve Chairman Ben Bernanke said more government action would be needed to strengthen the financial system. Treasuries recovered from earlier losses as U.S. equities declined and oil prices retreated. The timing and strength of any global recovery remain “highly uncertain,” Bernanke said in a speech in London. Bernanke said the next step should be getting toxic assets, like those tied to subprime mortgages, off bank balance sheets — the original intent of the Troubled Asset Relief Program funding. Also Tuesday, a government report showed the U.S. trade deficit in November plunged to $40.4 billion, reflecting lower oil prices and weakening demand for imports as the nation’s economic woes deepened. Economic calendar has advanced retail sales tomorrow.
Municipals:
U.S. municipal bonds surged as New York City more than doubled the size of an offering backed by state aid and Arizona’s Salt River Project boosted prices and dropped yields on its $744 million deal. NYC TFA Yields ranged from 2.05 percent on bonds due in 2011 to 5.55 percent on securities set to mature in 2039. That’s the lowest 30-year yield for New York building aid revenue bonds since June. Yield on 15-year top-rated general obligation bonds fell seven basis points to 4.41 percent today, the lowest since mid-September. The market has strengthened as buyers reinvest January bond payments and auction-rate settlement money. The secondary remainded fairly active. I was in touch with NYC 4% 8/18 at 3.85-3.76, DC PIT MBIA 4.5$ 37 ata 5.20 5.16. I was posted on PR INFRA 5.5% 7/27 @ 6.65, UDC 5% 27 @ 5.20.
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Commentary/New Issues
Corporate:
$3.5 BLN, Goldman Sachs Group, 1.625%, 7/15/11, Aaa/AAA, +95.1bp $2.0 BLN, Amgen, A3/A, 2 part $1.0 BLN, 5.70%, 2/1/19, +345bp; $1.0 BLN, 6.40%, 2/1/39, +345bp $1.0 BLN, Fedex, Baa2/BBB, 2 part $250 MM, 7.375%, 1/15/14, +595bp; $750 MM, 8.00%, 1/15/19, +571.6bp
ABS:
Nothing
Agency:
$1.5 BLN, FFCB, 2.00%, 1/17/12, +91bp
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 offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.