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.