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.