CREDIT MARKETS

Treasuries:
Financial stocks rose as skittish investors, who had shed shares after a weak Treasury auction during the prior session, bought them back after a stronger sale Thursday. The U.S. government sold $26 billion in 7-year Treasury notes at a yield of 3.30 percent. The auction received 2.26 times in bids more than the amount for sale, a little lower than the average of the last three auctions, when the government reintroduced the long-absent security to its auction calendar. Bond prices also gained support in Thursday’s action from weaker-than-expected housing data and dour employment figures, adding to fears about the potential for higher borrowing costs to short-circuit any economic recovery. As for Thursday’s economic data, the Labor Department said the number of continuing claims to collect jobless benefits rising to nearly 6.8 million, a record. Separately, the Commerce Department said sales of new homes were nearly unchanged in April, while economists had predicted an increase. A separate report said durable-goods orders rose more than predicted last month. The day ahead has GDP, Chicago PMI and U of M.

Commentary/New Issues

Corporate:
$5.0 BLN, Citi Funding/Citibank, Aaa/AAA, 4 part $1.4 BLN, 1.25%, 6/3/11, +38.4bp; $1.1 BLN, 6/3/11, +3ML-5bp; $1.3 BLN, 1.875%, 6/4/12, +48bp; $1.2 BLN, 6/4/12,
+3ML-3bp
$2.5 BLN, Bank of America, 7.625%, 6/1/19, A2/A, +410bp
$1.5 BLN, Morgan Stanley, A2/A, 2 part $500 MM, 6.00%, 5/13/14, +360bp; $1.0 BLN, 7.30%, 5/13/19, +360bp
$500 MM, Travelers Cos., 5.90%, 6/2/19, A2/A-, +225bp

ABS:
(talk) $1.0 BLN, AMXCA 09-1, ABS
(guidance) $834 MM, FCALT 2009-A, ABS

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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.

CREDIT MARKETS

Treasuries:
Treasury prices dropped Wednesday, pushing 10-year yields to six-month highs and sharply reversing earlier gains, moves which traders attributed to investors adjusting their holdings in expectation that higher mortgage rates would extend the duration of their portfolio. Short-term debt maturities were supported by the strong demand seen at the U.S. government’s auction of a record-matching $35 billion in 5-year securities, the second successful debt sale this week. Those securities are also less sensitive to mortgage-related hedging. The Treasury Department sold 5- year notes to yield 2.31 percent. Investors offered $2.32 for every dollar of debt sold, the highest since November. Indirect bidders, bought 44.2 percent of the new securities, well above the 36.2 percent on average in the last four sales and one of the highest proportions since 2007. Direct bidders, bought 2.8 percent of the sale, the highest since December. The curve went for record level steepness as the short end stays tied to the funds rate and the long end takes heat, with the 2 -10 year yield spread to 276. The day ahead has the spooky $26 billion seven year offering as well as initial jobless claims, durable orders and new home sales.

Commentary/New Issues

Corporate:
$1.0 BLN, Goldman Sachs, 7.50%, 2/15/19, A1/A, +337.5bp
$700 MM, Tailsman Energy, 7.75%, 6/1/19, Baa2/BBB, +412.5bp
$500 MM, Norfolk & Southern Corp., 5.90%, 6/15/19, Baa1/BBB+, +237.5bp
$350 MM, Allegheny Tech, 9.375%, 6/1/19, Baa3/BBB-, +578.5bp

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 FINRA/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.

CREDIT MARKETS

Treasuries:
Treasuries pared losses Tuesday after the government’s sale of $40 billion in 2-year notes garnered strong demand from a key group of investors. Treasury prices remained under pressure, pushing 10-year yields up to the highest since November, after a report showed consumer confidence surged more than predicted this month, supporting hopes that the economy may soon improve. Treasuries came under pressure after the Conference Board’s reading on U.S. consumer confidence surged to 54.9 in May, the highest in eight months, from an upwardly revised 40.8 in April. The Treasury Department sold $40 billion in 2-year notes to yield 0.940%, in the first of three large note auctions this week totaling $101 billion. The curve was twisted steeper with the 2 - 10 year yield spread now running 263. The day ahead has more housing data with existing home sales, which should see a boost on the heels of falling prices and rates. The Fed will be in buying bonds outright in the 3 to 4 year area while Treasury will follow with record $35 billion in 5 years.

Commentary/New Issues

Corporate:
$1.25 BLN, MetLife, 6.75%, 6/1/16, A2/A-, +375bp

ABS:
Nothing

Agency:
$250 MM, FHLMC 3.00%, 6/9/14

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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.

CREDIT MARKETS

Treasuries:
Treasuries fell, pushing 10 year notes to their biggest weekly loss since June 2008, as investors prepared for the U.S. government to resume debt sales after a two-week hiatus. The yield has surged 32 basis points this week, the most since gaining 35 basis points to 4.26 percent in the period ended June 13 on concern about inflation. The treasury announced this week it will auction $40 billion in two-year notes on May 26th, $35 billion in five year notes on May 27th and $26 billion in seven-year notes on May 28. Weakness in the U.S. dollar has made U.S. assets less attractive to foreign investors. Treasury yields rose even as the Fed bought $18.277 billion of U.S. debt in three purchase operations this week and minutes of the central bank’s April 28-29 policy meeting showed some officials judged the policy makers may need to boost asset purchases to secure a stronger economic recovery, while all agreed to hold off on such a move. Happy Memorial Day !!

Commentary/New Issues

Corporate:
Nothing

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 FINRA/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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasury prices headed lower Thursday, with 10-year note yields rising to the highest since November, after the Federal Reserve bought a lower portion of U.S. debt offered to it in its latest buyback. The central bank has bought more than $100 billion in Treasuries so far, well on its way to the $300 billion they plan to buy before autumn. Bond prices were higher in earlier trading as economic data in the U.S. and equity markets’ reaction to the Federal Reserve’s dour outlook on the economy doused investors’ hopes for a quick recovery from recession. The Labor Department said initial claims for unemployment benefits fell to a seasonally adjusted 631,000 in the week ending May 16. The curve was sent flying wider with the 2-10 year yield spread running out at 249.8 taking out steeps in a pretty straight line. Crude sank as general economic worries helped deflate demand expectations with July heading out at $61.05. The day ahead has an early close for the Memorial Day weekend.

Commentary/New Issues

Corporate:
$2.0 BLN, Hewlett-Packard, A2/A, 3 part; $750 MM, 5/27/11, +3ML+105bp; $1.0 BLN, 2.25%, 5/27/11, +140bp; $250 MM, 2.95%, 8/27/12, +160bp

ABS:
Nothing

Agency:
Nothing

The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasuries rose after minutes of an April 28-29 policy meeting showed some Federal Reserve officials judge that the central bank may need to boost asset purchases to secure a stronger economic recovery. The Fed’s Open Market Committee minutes also said it expected unemployment in 2009 to climb more than its previous forecast in January and the economy to slow more. The central bank has already agreed to buy $1.25 trillion of agency mortgage-based securities and up to $200 billion in agency debt by the end of the year, and up to $300 billion of Treasury securities by autumn. Earlier in the session, in the Fed’s latest foray into the bond market, the New York branch of the Fed bought $7.699 billion in debt maturing from 2016 to 2019, about the same amount it purchased at its last pass through this maturing range. Treasuries this week have also been pushed around by a burst of corporate bond sales. The difference between two and ten year Treasuries touched 2.39 percentage points today, the steepest since November 18th. Economic news tomorrow will focus on initial jobless claims, leading indicators and Philadelphia Fed.

Commentary/New Issues

Corporate:
$400 MM, Nordstrom, 6.75%, 6/1/14, BBB+, +475bp
$250 MM, Berkshire Hathaway Finance, 4.00%, 4/15/12, AA2/AAA, +158bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasury prices gave up early gains and turned lower Monday, pushing yields up, as U.S. stock markets gained ground on optimism about improvement in the housing market. Treasuries stayed down after the National Association of Home Builders’ index on the sentiment of the industry improved to the highest level since September. Longer-dated Treasuries were higher earlier, supported by the Federal Reserve’s purchase of $3.18 billion in debt maturing from 2019 to 2026, slightly more than in recent operations involving that maturity range. The central bank has averaged buying more than $14 billion a week since it announced in March its plan to buy $300 billion in Treasuries. The bond market also has some relief as there are no note, or bond, auctions scheduled this week. Yields indicate credit markets continue to thaw. The cost of borrowing in dollars between banks had its biggest two-day drop in more than four months amid confidence record low interest rates and a recovery among financial institutions is boosting lending. Minutes of the April 29 FOMC meeting will be released tomorrow.

Commentary/New Issues

Corporate:
$2.0 BLN, Barclays Bank, 6.75%, 5/22/19, AA3/AA-, +355bp
$1.0 BLN, Capital One Financial, 7.375%, 5/23/14, Baa1/BBB+, +540bp
$500 MM, State Street Corp., 4.30%, 5/30/14, A1/A+, +220bp
$300 MM, PPL Electric Utilities, 6.25%, 5/15/39, A3/A-, +210bp

ABS:
Nothing

Agency:
$6.0 BLN, FHLMC, 1.75%, 6/15/12, +46.5bp

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasury prices gave up early gains and turned lower Monday, pushing yields up, as U.S. stock markets gained ground on optimism about improvement in the housing market. Treasuries stayed down after the National Association of Home Builders’ index on the sentiment of the industry improved to the highest level since September. Longer-dated Treasuries were higher earlier, supported by the Federal Reserve’s purchase of $3.18 billion in debt maturing from 2019 to 2026, slightly more than in recent operations involving that maturity range. The central bank has averaged buying more than $14 billion a week since it announced in March its plan to buy $300 billion in Treasuries. That puts the Fed on pace to reach that total amount by early August, which it may not want to do. The Fed will release the minutes of its April 29 Federal Open Markets Committee meeting on May 20 amid speculation the central bank will adjust its treasury buyback program. Economic news tomorrow will focus on housing starts and building permits.

Commentary/New Issues

Corporate:
$900 MM, EOG Resources, 5.625%, 6/1/19, A3/A-, +245bp
$850 MM, Aflac Inc., 8.50%, 5/15/19, A2/A-, +530bp
$750 MM, Kellogg, 4.45%, 5/30/16, A3/BBB+, +180bp

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.

CREDIT MARKETS

Treasuries:
Treasuries fell on Friday, sending yields higher, after a report showed core inflation rose in April while manufacturing data from the New York region were not as bad as feared. The government said U.S. consumer prices were unchanged in April after seasonal adjustments. They have fallen 0.7 percent in the past 12 months, the largest decline in 54 years. But core inflation — which excludes volatile food and energy prices — rose 0.3 percent, boosted by a 9.3 percent increase in tobacco prices. Over the past year, the core CPI is up 1.9 percent. Bonds have come under pressure in recent months from massive supply of debt issued by the government to fund its financial and economic rescue plans. But the Federal Reserve has also intervened to buy Treasury bonds to prevent yields, which are used as benchmarks for many consumer loans, from rising too high. Another source of pressure for bonds has been hopes that the U.S. economy has stopped deteriorating as fast as before. However, those hopes have been somewhat curbed over the past week, by factors including disappointing April retail sales numbers. Economic news for the week will focus on housing starts, building permits and initial jobless claims.

Commentary/New Issues

Corporate:
$2.0 BLN, Citigroup, 8.50%, 5/22/19, A3/A, +562.5bp

ABS:
(priced) $1.0 BLN, CHAIT 09-A3, 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.

CREDIT MARKETS

Treasuries:
Treasury prices inched up Thursday, putting yields at their lowest in more than two weeks, as economic data pointed to continued strains in the nation’s employment outlook and to inflation remaining tame. The Federal Reserve’s purchase of debt maturing in 2010 and 2011 also lent a supportive tone to the early trading in Treasuries. A positive lean in U.S. equities capped the gains, especially for longer-dated notes. Investors have turned back to government debt amid rising concerns that the economy and financial markets may recover neither as quickly nor as robustly as some observers had been hoping. The Federal Reserve Bank of New York bought $2.975 billion in Treasuries maturing between 2010 and 2011. Dealers offered $27.086 billion to be purchased.
Bonds gained support from a Labor Department which said initial claims for jobless benefits last week rose to the highest level since mid-April, in part due to layoffs after automaker Chrysler LLC’s bankruptcy filing. The number of initial claims in the week ended May 9 rose to 637,000, up 32,000. Ten year note yields are up from as low as 2.46 percent after the central bank announced the plan. The Fed considers the increase in Treasury yields more as a reflection of a better economic outlook than a signal it needs to step up purchases of U.S. government debt, according to central bank officials who declined to be identified yesterday. Economic news for tomorrow will focus on CPI, capacity utilization and U of Michigan confidence.

Commentary/New Issues

Corporate:
$1.0 BLN, WalMart, 3.20%, 5/15/14, Aa2/AA, +125bp

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.