CREDIT MARKETS

Treasuries:
Treasury prices jumped Tuesday, pushing yields down by the most since early December, as worries about European banks’ exposure to Eastern Europe and concerns about Ireland’s financial stability had investors clamoring for the relative safety of U.S. government debt.  The flight-to-safety rally in Treasuries coincided with heavy selling in U.S. equities. Helping set the trading tone was a report released overnight by Moody’s Investors Service in which the rating agency noted that Eastern European countries “have now entered a deep and long economic downturn.”  Bond traders also digested a Federal Reserve survey of manufacturing in the New York state area that showed factory activity continuing to contract in the region. The Empire State survey plunged to -34.7 in February from -22.2 in the previous month.  Economic news tomorrow will focus on housing starts, building permits and industrial production.

Municipals:
Municipal bonds didn’t match gains in U.S. Treasuries today as tax-exempt borrowers led by the Georgia State Road and Tollway Authority began this week’s debt sales, set to total about $4.5 billion.  The Georgia transportation agency and at least three of the week’s other largest issuers—Massachusetts, Connecticut and New York City’s Municipal Water Finance Authority total almost $2 billion—took orders from individual investors, Municipal Market Advisers said. Yields on 30-year AAA general obligation bonds held at 5.12 percent, after rising for the first time in almost three weeks Feb. 13. The MMD was unchanged.  The secondary market was very light.  I saw not two-sided markets but was posted on several trades.  I was posted on PR Cmwlth 5.5% 7/19 @ 99.00, PR Muni Fin Agy 5% 8/27 @ 98.50.
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Commentary/New Issues

Corporate:
$1.5 BLN, Honeywell, A2/A, 2 part $600 MM, 3.875%, 2/15/14, +225bp; $900 MM, 5.00%, 2/15/19, +237.5bp
$900 MM, DuPont, A2/A, 2 part  $400 MM, 4.75%, 3/15/15, +312.5bp; $500 MM, 5.75%, 3/15/19, +312.5bp
$750 MM, Union Pacific Corp., Baa2/BBB, 2 part  $350 MM, 5.125%, 2/15/14, +345bp; $400 MM, 6.125%, 2/15/20, +350bp
$600 MM, Coca Cola Enterprises, A3/A, 2 part $350 MM, 3.75%, 3/1/12, +258bp; $250 MM, 4.25%, 3/1/15, +270bp

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