Treasuries:
Treasury prices declined Wednesday, with yields moving higher for a second straight session, as overseas and U.S. stocks rose amid hopes that stimulus measures said to be in the works in China could give rise to a global economic rebound. The government will auction $33 billion in 3-year notes on Tuesday, that will be followed the next day by $17 billion in 10-year debt and $10 billion in 30-year bonds on Thursday. Both the latter and what would be long-term debt sales will be reopenings, meaning the debt sold will carry the same coupon and mature on the same date as the most recently issued securities. For the longer-dated bonds, it will be the first reopening a month after the original issue. Bonds stayed down even after ADP Employment Services said that companies slashed 697,000 private-sector jobs in February. Yields indicate the government and central bank have yet
to restore credit markets to where they were before a rout that began in 2007 and worsened last year. The Standard & Poor’s 500 Index d rose 2.4 percent. It fell to a 12 year low yesterday. Economic news tomorrow will focus on initial jobless claims and factory orders.
Municipals:
New York state received about $500 million of orders for a bond sale concluding today, enticing individual investors with bigger payouts relative to top-rated municipal debt compared with a year ago. Ten-year state bonds were offered with a preliminary yield of 3.87 percent, or 39 basis points more than MMA AAA index. iven the level of demand,” the state decided to forgo a second day of gathering orders from retail investors. The state’s borrowing costs have risen as Governor David Paterson and lawmakers struggle to close a record $14.2 billion budget deficit for the fiscal year that begins April 1. The deficit has been exacerbated by falling tax revenue from Wall Street Tax-exempt bonds have fallen for 10 days straight, sending yields on top-rated general obligation securities due in 10 years to 3.48 percent. NYC TFA also concluded its pricing of $400M Building Aid Revenue Bonds. the final read on the MMD was a follows: 2010-2018 yields were higher by 2-10 bpts; 2019-2022 yields were higher by 4-9 bpts; 2023-2039 yields were higher by 2-3 bpts.
Commentary/New Issues
Corporate:
$600 MM, NISource Finance, 10.75%, 3/15/16, Baa3/BBB-, +832bp
$350 MM, Appalachian, 7.95%, 1/15/20, Baa2/BBB, +500bp
ABS:
Nothing
Agency:
$3.0 BLN,FHLB, 2.25%, 4/13/12, +89bp
$400 MM, FHLMC, 3.80%, 3/9/16
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