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.