CREDIT MARKETS

Treasuries:
Treasury prices turned lower Thursday, cutting into Wednesday’s historic rally, as the Federal Reserve’s move to purchase $300 billion in U.S. notes over the next six months rippled through the bond market. On Wednesday, government bond yields plunged by their widest margin since the 1987 stock market crash. Touching off the rally was the Fed’s announcement it plans to buy government notes with maturities of two to 10 years. Fed policy makers also said Wednesday that the U.S. central bank would buy an additional $750 billion of agency mortgage-backed securities, a move intended “to provide greater support to mortgage lending and housing markets.” Also Thursday, the Treasury announced it plans to auction $40 billion in 2-year notes and $34 billion in 5-year notes. It will also sell $24 billion in 7-year notes, a maturity reinstated last month after a long break to help spread out the government’s financing needs.
Earlier, Treasuries played off Labor Department data showing initial claims for unemployment benefits declined in the most recent week, though continuing claims increased to a new record indicating finding a new job is increasingly difficult. There is no econcomic news tomorrow.

Commentary/New Issues

Corporate:
$2.0 BLM, UPS, Aa3/AA-, 2 part $1.0 BLN, 3.875%, 4/1/14, +230bp; $1.0 BLN, 5.125%, 4/1/19, +255bp
$400 MM, Johns Hopkins University, 5.25%, 7/1/19, Aa2/AA, +270bp
$400 MM, Kansas City P&L, 7.15%, 4/1/19, A3/BBB+, +460bp

ABS:
(priced) $2.95 BLN, FORDO 2009-A, ABS
(priced) $3.0 BLN, CCCIT 2009-A1, ABS
(full details) $1.3 BLN, Nissan 2009-A, ABS

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.