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.