CREDIT MARKETS

Treasuries:
Treasury prices remained lower Thursday, pushing long-term yields to their highest levels in more than five months, as the Treasury Department had to pay more than anticipated to sell $14 billion in 30-year bonds, the last major auction of the week. The Treasury sold the 30-year bond to yield 4.288 percent, higher than traders expected. The amount matched what was sold in February as the largest on record. Investors offered $2.14 for every dollar of debt available, compared to an average of $2.15 at the last four auctions. Indirect bidders, banks, bought 33 percent of the auction, compared with 35.3 percent on average at the last four. Direct bidders bought 4.1 percent. The proportion taken by direct bidders has been unusually high in the last few auctions.
The government’s bond sales have received extra attention in recent months as an indication of how well the U.S. can finance all the stimulus and financial-market stability programs that have been implemented to bring the nation’s economy around. Treasuries extended their decline after the Labor Department said initial claims for unemployment benefits fell in the latest week to 601,000, the lowest level since January, signaling a peak may have been passed. Economic news tomorrow will focus on the non-farm payroll report that will show that 600,000 jobs were lost in April.

Commentary/New Issues

Corporate:
$6.0 BLN, Dow Chemical, Baa3/BBB-, 3 part $1.75 BLN, 7.60%, 5/15/14, +550bp; $3.25 BLN, 8.55%, 5/15/19, +525bp; $1.0 BLN, 9.40%, 5/15/39, +512.5bp
$1.0 BLN, Kinder Morgan Energy Partners, Baa2/BBB, 2 part $300 MM, 5.625%, 2/15/15, +350bp; $700 MM, 6.85%, 2/15/20, +362.5bp
$350 MM, Corning Inc., Baa1/BBB+, 2 part $250 MM, 6.625%, 5/15/19, +337.5bp; $100 MM, 7.00%, 5/15/24, +385bp

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.