CREDIT MARKETS

Treasuries:
Treasury prices fell Thursday, pushing 10-year yields to the highest since November, after a report showed initial claims for jobless benefits in the latest week unexpectedly improved, adding to hopes that the economy may be finally recovering. Losses were limited as the Federal Reserve stepped up as a buyer of last resort and bought more than $3 billion in U.S. debt maturing between 2019 and 2026. The Fed bought $3.025 billion in Thursday’s operation. Dealers submitted $11.741 billion to be purchased. Treasury prices were under pressure earlier as the Labor Department said jobless claims unexpectedly fell by 14,000 to 631,000 in the latest week. However, continuing claims for benefits set a new record, signaling ongoing difficulty that people are having finding a new job. Separately, the Commerce Department said real consumer spending declined 0.2 percent in March, after gains in prior months. Also relieving some fears, an index that gauges Chicago-area business activity rose to 40.1 in April from 31.4 in March. It was the largest one-month increase in the index since 1983. The index shows business activity in the Chicago area declined in April for the seventh straight month but at a much slower pace. Economic news for tomorrow will focus on University of Michigan and ISM Manufacturing.

Commentary/New Issues

Corporate:
$7.0 BLN, Citibank/Citigroup Funding, Aaa/AAA, 4 part $1.20 BLN, 5/5/11, +3ML-8bp; $2.30 BLN, 1.375%, 5/5/11, +48.3bp; $1.25 BLN, 5/7/12, +3ML+3bp; $1.5
BLN,$2.25 BLN, 1.875%, 5/7/12, +59bp
$1.5 BLN, Noika Corp., A1/A, 2 part $1.0 BLN, 5.375%, 5/15/19, +237.5bp; $500 MM, 6.625%, 5/15/39, +262.5bp

ABS:
(guidance) $500 MM, Harley-Davidson 09-1, ABS
(guidance) $1.25 BLN, HAROT 2009-2, 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.

CREDIT MARKETS

Treasuries:
Treasury prices turned lower Wednesday, pushing 10-year note yields to their highest level since November, after the Federal Reserve disappointed some investors by making no changes to its plans to buy Treasuries, mortgage-backed securities and housing agency debt. Longer-dated bonds were also under pressure from the day’s note auction and news from the Treasury Department on coming debt issuance, which will draw the Fed’s current buying plan. Shorter-term debt was buffered by weak data on the U.S. economy and the prospect of low benchmark rates for some time. The Federal Reserve Open Market Committee said the economic outlook has improved but it’s likely the economy will remain weak for some time. Ten-year notes now yield 2.16 percentage points more than 2-year debt. That gap is the highest in at least five months, steepening the so-called yields curve that charts the spread between the two securities. Longer-term debt is also subject to vacillating concerns that inflation will roar back when the economy recovers, raising investor demand for higher yields to compensate for that. Economic news tomorrow will focus on initial jobless claims.

Commentary/New Issues

Corporate:
$2.0 BLN, Goldman Sachs, 6.00%, 5/01/14, A1/A, +410bp$800 MM, Whirlpool Corp., Baa3/BBB-, 2 part $350 MM, 8.00%, 5/1/12, +662.5bp; $500 MM, 8.60%, 5/1/14, +662.5bp$500 MM, Diamond Offshore Drilling, 5.876%, 5/1/19, Baa1/A-, +287.5bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices stayed lower Tuesday, pushing 10-year yields up to the highest since mid-March, after the government got sufficient demand at its auction of a record amount of 5-year notes. Bonds were under pressure earlier from some positive data on consumer confidence, erasing gains stemming from investor concern about the threat posed by swine flu. The Treasury Department sold $35 billion in 5-year securities to yield 1.94 percent. Bidders offered $2.22 for every dollar issued, compared to $2.07 on average at the last four monthly auctions. Indirect bidders bought 30.8 percent, compared to 34.6 percent on average at the last four auctions. On Monday, the Treasury Department saw decent demand for $40 billion in 2-year notes. On Wednesday, it will sell $26 billion in 7-year debt. Bond prices were higher earlier in the trading session as swine flu spread, increasing worries about the disease stunting economic activity, especially travel. The Federal Reserve also starts its two-day policy meeting, with a statement expected after the conclusion Wednesday afternoon. Economic news tomorrow will focus on FOMC decision and GDP.

Commentary/New Issues

Corporate:
$1.0 BLN, ITT Corp, Baa1/BBB+, 2 part $500 MM, 4.90%, 5/1/14, +300bp; $500 MM, 6.125%, 5/1/19, +312.5bp$1.0 BLN, Potash Corp. of Saskatchewan, Baa1/A-, 2 part $500 MM, 5.25%, 5/15/14, +337.5bp; $500 MM, 6.50%, 5/15/19, +350bp$500 MM, Northern Trust Corporation, 4.625%, 5/1/14, A1/AA-, +275bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices stayed lower Friday, pushing 10-year yields to their highest levels since mid-March, after a pair of government reports showed durable-goods orders and new-home sales were better than expected, raising hopes that some areas of the economy may have found a bottom. Ten year yields touched 3 percent for the first time since the Federal Reserve said five weeks ago it would buy government debt to drive down consumer borrowing costs. Purchases of new homes in the U.S. last month were higher than anticipated, providing further evidence the market may be stabilizing. Sales decreased 0.6 percent to an annual pace of 356,000. Orders for U.S. durable goods dropped 0.8 percent in March, following a revised 2.1 percent increase in February. Next week also brings the Federal Reserve’s policy-setting meeting. At the most recent meeting, in March, the central bank surprised markets by saying it planned to buy $300 billion of Treasury securities in an effort to keep lending rates low and spur economic growth. Treasuries are benchmarks for corporate debt, mortgages, consumer-loan rates on things like automobiles, and municipal debt, so keeping yields low is intended to make borrowing on all of those more affordable. Benchmark 10-year-note yields plunged a half percentage point on the announcement, but have come almost all the way back up to near 3 percent since then, raising questions about whether the Fed will be satisfied with the level of rates. To date, the Fed has purchased $80.81 billion of U.S. debt under this program. Economic news for the week will focus on FOMC rate decision, 1st quarter GDP, ISM manufacturing and U of M confidence.

Commentary/New Issues

Corporate:
Nothing

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.

CREDIT MARKETS

Treasuries:
Treasury prices ended Thursday slightly higher after the government drew strong demand at its auction of $8 billion of inflation-indexed debt. The government sold $8 billion in Treasury Inflation Protected Securities maturing in five years to yield 1.278%, well below where the securities were trading before the auction. The 5-year debt garnered bids for $2.66 for every dollar available, the highest in a sale of new debt since 2004. Indirect bidders bought 26.5 percent of the sale, compared to an average of 39.5 percent at the last five new sales but similar to demand in the most recent handful of auctions. The Treasury said it will sell $40 billion in 2-year notes on Monday, followed by a record $35 billion in 5-year debt. Separately, the National Association of Realtors said resales of homes and condos fell 3% in March to a seasonally adjusted annual rate of 4.57 million. Yields on benchmark 10-year notes at one point touched their highest level in five weeks, and the Treasury Department said it would auction $101 billion next week. The central bank has purchased $66.717 billion in U.S. debt through 12 buybacks since the program began on March 25th. It has said it will buy up to $300 billion over six months. Economic news tomorrow will focus on durable goods and new home sales.

Commentary/New Issues

Corporate:
$1.0 BLN, Stanford Univ, Aaa/AAA, 3 part $350 MM, 3.625%, 5/1/14, +175bp; $250 MM, 4.25%, 5/1/16, +180bp; $400 MM, 4.75%, 5/1/19, +185bp
$750 MM, Metropolitan Transit Authority (MTA), 7.336, 11/15/39, AA/A+, +350bp

ABS:
Nothing

Agency:
$4.5 BLN, Freddie Mac, 2.50%, 4/23/14, +65bp

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.

CREDIT MARKETS

Treasuries:
Treasuries prices fell Wednesday, pushing yields up to the highest more than a month, as stocks clung to gains and California brought an expanded $6.85 billion building-bond sale to market. Of the entire general obligation bond sale, California sold $5.23 billion in what’s known as Build America Bonds, then state treasurer’s office said Wednesday. It is the largest sale to date of securities under a new federal program, created by the February fiscal stimulus package, which is designed to help states sell infrastructure bonds to a wider group of investors, hopefully at a lower cost. California said interest on all bonds sold Wednesday is subject to federal income tax, a change from many municipal issues, and making them of particular interest to traders of other taxable securities such as Treasuries, corporate bonds and mortgage securities. Also reducing the appeal of Treasuries, stocks gained after the Federal Housing Finance Agency said U.S. home prices rose in February for the second straight month. The Fed plans to buy as much as $300 billion of treasuries over six months in an effort to lower consumer borrowing costs. The central bank is scheduled to buy notes maturing from May 2012 to August 2013 tomorrow. Economic news tomorrow will focus on initial jobless claims and existing home sales.

Commentary/New Issues

Corporate:
$6.855 BLN, State of California, A2/A; $505 MM, 5.65%, 4/1/13, +365bp; $500 MM, 5.25%, 4/1/14, +325bp; $500 MM, 5.45%, 4/1/15, +345bp; $350 MM, 5.95%, 4/1/16,
+340bp; $2.0 BLN, 7.50%, 4/1/34, +365bp; $3.0 BLN, 7.55%, 4/1/39, +365bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices gave up earlier gains Tuesday, sending yields higher, after the Federal Reserve bought $7 billion in U.S. debt, mostly maturing in 2016. A turnaround in stocks also decreased the appeal of bonds as an alternative asset. The Fed said it would be purchasing specific securities maturing between 2016 and 2019. However, almost half of its actual purchases were those due in 2016, with a very limited amount in 10-year debt, disappointing some analysts and leading to a bigger sell-off in longer-dated debt. Treasuries were supported earlier after Kansas City Fed President Thomas Hoenig said the current federal bailouts of big financial firms are distorting the economy and prolonging the crisis. The comments came in testimony to Congress about banks that are deemed “too big to fail.” Treasuries are also being pushed a bit by hedging activity before California’s taxable bond offering on Wednesday, expected to be up to $4 billion. California and other municipalities, which usually issue tax-exempt debt and have very little effect on the broader taxable market, have lined up to sell taxable Build America Bonds, part of Congress’ economic stimulus package earlier this year to encourage spending on infrastructure projects to create jobs. No economic news for tomorrow.

Commentary/New Issues

Corporate:
$300 MM, Toledo Edison, 7.25%, 5/1/20, Baa2/BBB, +437.5bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices jumped Monday, pushing yields down by the most in at least a month, as U.S. stocks lost ground and reversed some of their recent rally, increasing the appeal of the U.S. debt as an alternate asset. The Dow Jones Industrial Average fell 3.2%, even as Bank of America said its first quarter profit topped $4 billion, aided by government support and special items. The Treasury Department said it will sell $8 billion in 5-year inflation-indexed securities on Thursday, in line with some analysts’ forecasts. However, supply for the week is expected to be overshadowed by purchases of Treasuries by the Federal Reserve. The Fed is scheduled to buy debt maturing in 2016 to 2019 on Tuesday, followed by purchases of 3- and 4-year securities on Thursday The U.S. needs to raise $3.25 trillion this fiscal year, according to primary dealer Goldman Sachs, as the government seeks to finance bank bailouts, stimulate the economy and service deficits. Earlier Monday, an index on leading indicators fell 0.3% in March, in line with analysts’ expectations. The Conference Board’s index indicates the recession may continue though the summer, though its intensity could ease. Economic news for tomorrow will focus on ABC Consumer Confidence.

Commentary/New Issues

Corporate:
$1.375 BLN, NJ Turnpike Authority, 7.414%, 1/01/40, A3/A, +370bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices fell on Friday, sending yields sharply higher, after data showed consumer sentiment improved and General Electric and Citigroup reported better-than-expected results, reducing the appeal of government debt. The University of Michigan preliminary index of consumer sentiment rose to 61.9, the highest since September, from 57.3 in March. Treasuries tend to gain when risk aversion is high and the outlook for the economy darkens, which prompts investors to seek the safety of government debt. Trading volumes have declined even as the Treasury sells debt and the Fed purchases government securities. Since January 20th, the average daily volume of Treasuries is $178.5 billion. That’s down from an average of $248.5 billion back through June 1, 2004. Indiana in March joined seven other U.S. states with a jobless rate of at least 10 percent, and unemployment surged in Oregon, Washington and West Virginia as the worst employment slump in the postwar era rippled through the economy. Economic news for the week will focus on initial jobless claims, existing home sales, durable goods and new home sales.

Commentary/New Issues

Corporate:
Nothing

ABS:
(priced) $1.8 BLN, SLM Student Loan Trust 09-2, 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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Thursday, pushing yields up, even as the government received decent demand at its auction of 10-year notes, the final sale of the week. The Treasury Department sold $18 billion in 10-year notes at a yield of 2.950 percent, slightly higher than some traders anticipated. The auction was a reopening, meaning the debt for sale carries the same coupon and maturity as the original bonds, in this case issued in February. The government also reopened that 10-year issue in March. Bidders offered $2.49 for every dollar being sold, compared to an average of $2.39 at the last five sales. Indirect bidders took 23.7 percent of the auction, in line with the average of 23.8 percent at the last five 10-year reopening. Bonds were also under pressure as U.S. equities pointed higher, boosted as Wells Fargo & Co surprised Wall Street with better-than-expected results. Gains in stocks tend to detract from the appeal of the relative safety of Treasuries. The bond and the stock market are closed today in observance of Good Friday. Happy Easter!

Commentary/New Issues

Corporate:
Nothing

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.