CREDIT MARKETS

Treasuries:
Treasury prices rose Tuesday, pushing yields down, after the government received the strongest demand in more than a year at its auction of $40 billion in two-year notes, by far the most ever. The Treasury Department sold the securities maturing in January 2011 to yield 0.925 percent. Investors bid $2.69 for every dollar of notes available, the highest so-called bid-to-cover ratio since November 2007. Indirect bidders bought $34.6 percent of the sale, compared to an average of 33.8 percent at the last four auctions, which were for smaller amounts. The government plans to sell $30 billion in five-year notes on Thursday. Longer-dated debt has been positive most of the trading session as data on home sales and consumer’s outlook came in worse than some had expected, further reducing the likelihood that inflation would rise anytime soon. Of particular interest to the bond market will be if the Fed amends its statement last month that it is “evaluating the potential benefits of purchasing longer-term Treasury securities.” Confidence among U.S. consumers unexpectedly fell in January to a record low reading of 37.7. Home prices in 20 US cities dropped 18.2 percent in November from a year earlier, the fastest on record.
Municipals:
The New York Yankees sold $259 million of bonds at yields two to three percentage points higher than the baseball team’s first round of city-approved tax-exempt financing to finish its new stadium in the Bronx. Investors’ demands for bigger payouts on lower-rated bonds. New York’s Metropolitan Transportation Authority garnered enough demand from institutions such as mutual funds to increase the bond offering for its bridge and tunnel division today by 30 percent to $325 million, according to a news release. Bonds due in 2038 were priced to yield 5.48 percent. Top-rated state and local government bonds gained for the first time in more than a week, Yields on benchmark 30-year tax-exempt bonds fell four basis points, or 0.04 percentage point, to 5.28 percent. The final read on the MMD was 2010: yield were unchanged; 2011-2012 yields were lower by 2-3 bpts; 2013-2028 yields were lowered by 5-7 bpts; 2029-2039 yields were lowered by 3-4 bpts. I was in touch with PR GO 5 1/8% 29 6.70-2.5, Owenboro WTR KY 5% 9/31 ata 97.75-98.50, LIPA 5% 12/35 ata 5.50-5.45. I was posted on CA ST 5% 3/16 @ 3.90, Dorms 5% 3/35 @ 5.40.
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Commentary/New Issues

Corporate:
$8.0 BLN, Bank of America, Aaa/AAA, 2 pt $6.0 BLN, 2.10%, 4/30/12; $2.0 BLN, 4/30/12, +3ML +30bp
$400 MM, Washington Post, 7.25%, 2/1/19, A1/A+, +475bp
$500 MM, Entergy Texas, 7.125%, 2/1/14, Baa3/BBB+, +470bp

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 offering mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets