CREDIT MARKETS

Treasuries:
Treasuries advanced Tuesday, pushing yields down the most since at least mid-December, as Treasury Secretary Timothy Geithner’s plans to help troubled U.S. banks disappointed investors.  The plan is missing some key details market participants were hoping for and Geithner’s comments that a recovery will be slow made investors less likely to hold riskier assets, including stocks and corporate bonds. Geithner said his new plan to rescue the financial industry and restart stalled credit markets, including a strategy of partnering with private capital, will cost more than $1 trillion.  The Treasury Department sold a record $32 billion in three-year notes to yield 1.419 percent, the first tranche of the biggest quarterly sales of notes and bonds on record. Indirect bidders, bought 44.8 percent of the sale, the highest proportion since 2004, indicating strong demand from investors. The government resumed selling the maturity on a monthly basis in November, after an 18-month lapse. Wednesday will bring $21 billion in 10-yea notes, followed by $14 billion in 30-year bonds on Thursday. Both long-term debt sales are for the most ever.

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Commentary/New Issues

Corporate:
$1.0 BLN, NewsAmerica, Baa1/BBB+, 2 part $700 MM, 6.905, 3/1/19, +410bp; $300 MM, 7.875%, 3/1/39, +437.5bp $350 MM, Oglethorpe Power, 6.10%, 3/15/19, A3/A, +325bp

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