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.