CREDIT MARKETS

Treasuries:
Treasury prices rose Friday, pushing long-term yields down from five-month highs, after bond investors seized on the downbeat aspects of the Labor Department’s monthly employment report, raising the appeal of the relative safety of U.S. debt. The headline figure job loss figure was better than economists had expected, with the economy losing 539,000 jobs in April. The data were helped by outsized government hiring for the census. The unemployment rates rose to the highest in 26 years, 8.9 percent last month, from 8.5 percent. In corporate bond trading, the spotlight was on Bank of America and Morgan Stanley both selling debt backed by their own credit Friday, meeting a condition to return money borrowed from the government. Declines in bond prices have pushed up yields just as the Fed is buying U.S. debt to drive down borrowing costs and spur the economy out of the deepest recession in half a century. The central bank scheduled a purchase on May 11 of Treasuries maturing from August 2026 to February 2039. It will be the 17th buy since the Fed began its six-month program in march to acquire up to $300 billion in U.S. debt. Economic news for the week will focus on CPI, PPI, initial jobless claims, University of Michigan and retail sales.

Commentary/New Issues

Corporate:
$3.0 BLN, Bank of America, 7.375%, 5/15/14, A2/A, +537.5bp
$750 MM, CBS Corp, Baa3/BBB, 2 part $400 MM, 8.20%, 5/15/14, +635.5bp; $350 MM, 8.875%, 5/15/19, +596.2bp
$425 MM, Hasbro Inc, 6.125%, 5/15/14, Baa2/BBB, +400bp

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.