CREDIT MARKETS

Treasuries:
Treasury prices fell Friday, pushing 10-year yields up the most since June, as investors reacted to concerns that a massive government stimulus in the works in Washington will balloon the national debt. The House Ways and Means Committee approved the $275 billion tax portions of President Barack Obama’s economic recovery plan on Thursday, setting up for a full House vote next week. Enactment of a bill will mean even more debt issuance from the Treasury, already expected by some to top $2 trillion in the current fiscal year. Next week, the government will auction $40 billion in two-year notes, an amount that has doubled since November 2007. The $30 billion in five-year notes to be sold is double the amount of just a year ago. The Treasury is also looking for more input from its dealers ahead of its big quarterly auction cycle in February. It asked dealers in a survey Friday what adjustments to the auction calendar it should make. The economic calendar for next week highlights existing home sales, durable goods, new home sales and U of Michigan.

Municipals:
Tax-exempt bond yields rose to a three-week high as U.S. municipal borrowers led by Connecticut and New York City Municipal Water Finance Authority offered greater payouts to entice demand for new issues. States, municipalities and other tax-exempt issuers sold at least $3.5 billion of bonds this week, compared with $3.96 billion during the year-earlier period. Bond Buyer 20 index of yields on general obligation bonds due in 20 years rose 33 basis points, or 0.33 percentage point, to 5.13 percent, the highest since Dec. 31. demand from individual investors tapered off this week, after helping to drive prices higher in recent weeks. The average yield on bonds maturing in 10 years rose to 3.51 percent today, from 3.38 percent a week ago, which was the lowest since last February. Mets and Yankees will raise capital to finish their respective stadiums and DC WASA as well. The read on the MMD was yields were higher by 1-5 along the curve.
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Commentary/New Issues

Corporate:
$12 BLN, Citigroup/Citigroup Funding, Aaa/AAA, 4 part $2.25 BLN, 7/30/10, +3ML+10bp; $350 MM, 4/30/12, +1ML+45bp; $1.9 BLN, 4/30/12, +3ML+33bp; $7.5 BLN, 2.125%, 4/30/12, +105.75bp

ABS:
(priced) $1.30 BLN, HAROT 2009-1, 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 offering mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets