CREDIT MARKETS
Treasuries:
Treasury prices fell Thursday, pushing 10-year yields to the highest since November, after a report showed initial claims for jobless benefits in the latest week unexpectedly improved, adding to hopes that the economy may be finally recovering. Losses were limited as the Federal Reserve stepped up as a buyer of last resort and bought more than $3 billion in U.S. debt maturing between 2019 and 2026. The Fed bought $3.025 billion in Thursday’s operation. Dealers submitted $11.741 billion to be purchased. Treasury prices were under pressure earlier as the Labor Department said jobless claims unexpectedly fell by 14,000 to 631,000 in the latest week. However, continuing claims for benefits set a new record, signaling ongoing difficulty that people are having finding a new job. Separately, the Commerce Department said real consumer spending declined 0.2 percent in March, after gains in prior months. Also relieving some fears, an index that gauges Chicago-area business activity rose to 40.1 in April from 31.4 in March. It was the largest one-month increase in the index since 1983. The index shows business activity in the Chicago area declined in April for the seventh straight month but at a much slower pace. Economic news for tomorrow will focus on University of Michigan and ISM Manufacturing.
Commentary/New Issues
Corporate:
$7.0 BLN, Citibank/Citigroup Funding, Aaa/AAA, 4 part $1.20 BLN, 5/5/11, +3ML-8bp; $2.30 BLN, 1.375%, 5/5/11, +48.3bp; $1.25 BLN, 5/7/12, +3ML+3bp; $1.5
BLN,$2.25 BLN, 1.875%, 5/7/12, +59bp
$1.5 BLN, Noika Corp., A1/A, 2 part $1.0 BLN, 5.375%, 5/15/19, +237.5bp; $500 MM, 6.625%, 5/15/39, +262.5bp
ABS:
(guidance) $500 MM, Harley-Davidson 09-1, ABS
(guidance) $1.25 BLN, HAROT 2009-2, ABS
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.