CREDIT MARKETS

Treasuries:
Treasury prices moved lower Wednesday, pushing yields higher for a third day, as the government sold a record amount of 5-year notes, the second in a trio of U.S. auctions flooding the bond market with fresh supply this week. The Treasury Department sold $32 billion in 5-year notes to yield 1.985 percent. Investors bid $2.21 for every dollar of the notes up for sale, the most since November. Indirect bidders, a class of investors that includes foreign central banks, took 48.9% of the sale, the most since September 2006. On Thursday, the government will sell $22 billion in 7-year notes. That sale is creating the most uncertainty for traders because the maturity hasn’t been offered since 1993, raising questions about how much demand it will garner from investors. Existing-home sales dropped 5.3% to a seasonally adjusted annual rate of 4.49 million in January, the lowest sales pace in 12 years and worse than economists expected. Economic news tomorrow will focus on new home sales, initial jobless claims and durable good orders.

Commentary/New Issues

Corporate:
$1.0 BLN, Pepsico, 3.75%, 3/1/14, Aa2/A, +180bp $850 MM, Avon Products, A2/A, 2 part $500 MM, 5.625%, 3/1/14, +375bp; $350 MM, 6.50%, 3/1/19, +375bp $500 MM, Nevada Power, 7.125%, 3/15/19, Baa3/BBB, +425bp

ABS:
Nothing

Agency:
Nothing

All statistical data is sourced from Bloomberg Financial Markets 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