CREDIT MARKETS

Treasuries:
Treasury prices fell Monday, pushing yields to the highest in weeks, as the government began a slew of debt auctions this week, ranging from short-term bills to $8 billion in 20-year inflation-indexed securities. The auction of 20-year TIPS drew a yield of 2.50 percent, compared with an average forecast of 2.37 percent . Investors bid for 1.92 times the amount of debt on offer, below the average bid-to-cover ratio of 1.98 for the previous five auctions. Indirect bidders, were awarded 54 percent of the securities. The average for the previous five sales was 57.2 percent. The U.S. will sell $40 billion of two-year notes tomorrow and $30 billion of five year debt on January 29th. The difference in yield between 2- and 10-year securities widened to 1.81 percentage points, from 1.25 percentage points December 26, on the prospects for debt sales in longer-term securities. Purchases of existing homes rose 6.5 percent to an annual rate of 4.74 million from a revised 4.45 million in November.

Municipals:
U.S. state and local governments led by Washington, D.C.’s water utility plan to sell about $3 billion of bonds this week, as the biggest rise in benchmark borrowing costs in more than a month damps debt offerings. The District of Columbia Water and Sewer Authority intends to raise $300 million to fund capital improvements and pay off short-term debt. This week’s tax-exempt offerings also include $250 million for bridge and tunnel work around New York City and a total of $341 million for the Yankees and Mets baseball teams to complete new stadiums in the Bronx and Queens. Sales of new municipal bonds are up 25 percent in 2009 over the year-earlier period, even as the total amount of existing bonds traded in the secondary market has fallen to about half of last year’s level. Yields on 30-year general obligation bonds today rose one basis point, or 0.01 percentage point, to 5.32 percent. The final read on MMD is as follow 2010-2011: yields were unchanged; 2012-2022 yields were higher by 1-3 bpts; 2023-2039 yields were highers by 1-3 bpts.
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Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
$255 MM, FFCB. 2.85%, 2/11/13

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