CREDIT MARKETS

Treasuries:
Treasuries were little changed, following their biggest weekly gain this year, as the U.S. prepares to sell $63 billion in notes and bonds. The treasury will auction a record $34 billion of three-year notes tomorrow, $18 billion in 10 year notes the next day and $11 billion in 30 year bonds March 12. The U.S. joins others countries in selling debt to raise cash to restore growth with global spending. The World Bank said March 8th the first global economic contraction since World War II will lead to a surge of debt issuance by rich nations that risks “crowding out many developing country borrowers.” U.S. stocks opened lower but seesawed throughout the day, helped by gains in financials and pharmaceuticals. Central banks are still trying to show thaw credit markets and narrow the difference between what banks and the government pay to borrow for three months. Treasuries gained last week, a rally that pushed 10-year yields down by the most since mid-December as declining equities fueled investors’ desire for the safety of fixed-income investments. Economic news tomorrow will focus on wholesale trade inventories for January.

Municipals:
Washington, D.C., plans to sell its first bonds to receive a top credit rating beginning tomorrow, among the largest of more than $5 billion in municipal offerings planned for this week. The District of Columbia, the U.S. capital, will offer $445 million of tax-exempt bonds secured by income tax revenue, which won Standard & Poor’s AAA grade. Yields on top-rated municipal bonds due in 15 years held at 4.28 percent today. By comparison, the yield on general obligation bonds rated A+ was 4.63 percent. Washington expects to obtain lower borrowing costs that may save as much as $4 million in 2010 by dedicating personal and business income taxes to repaying the debt. The city authorized $3 billion in borrowing under the new program. DC expects using the income-tax bonds will get a more favorable rate than the general obligation bonds. The University of Pittsburgh and the New York State Environmental Facilities Corp. today took orders from individual investors for almost $700 million in offerings set to conclude tomorrow. The MMD curve was unchanged.

Commentary/New Issues

Corporate:
$8.0 BLN, GE Capital, Aaa/AAA, 4 part $4.0 BLN, 1.80%, 3/11/11, +86.7bp; $1.0 BLN, 3/11/11, +3ML+8bp; $1.5 BLN, 2.25%, 3/12/12, +91.2bp; $1.5 BLN, 3/12/12, +3ML+20bp $1.25 BLN, Medtronic A1/AA-, 3 part $550 MM, 4.50%, 3/15/14, +262bp; $400 MM, 5.60%, 3/15/19, +275bp; $300 MM, 6.50%, 3/15/39, +287.5bp $4.5 BLN, Bank of America, Aaa/AAA, 2 part $2.0 BLN, 2.375%, 6/22/12, +102.5bp; $2.5 BLN,6/22/12, +3ML+20bp $350 MM, PG&E, 5.75%, 4/1/14, Baa1/BBB, +395bp

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