CREDIT MARKETS

Treasuries:
Treasury prices rose Monday, pushing yields lower, with the Federal Reserve stepping in once again to purchase long-term debt in the hopes of stimulating lending by making borrowing costs affordable. Bonds also played off a broad decline in U.S. stocks, increasing the appeal of debt, as well as a lack of government issuance for two weeks. To date, the Fed has purchased $91.88 billion in Treasuries, well on its way to its goal of $300 billion by the autumn. The Fed has two more buyback operations scheduled this week. Treasuries were on a tear today in largely corrective and light trade and went after some key levels into the close as the 10-year lead the way and took out the 3.175 percent point post session. The curve was working well flatter with the late session seeing the 2-10-year yield spread headed out near 227.9. Gold is laboring under profit taking, as other commodities, after recent sizable run-ups with spot now 913.84. Crude was also slipping after taking a few shots at unchanged heading out at 58.50. Also drawing attention of bond traders, Microsoft Corp is selling $3.75 billion in its first-ever long-term bond offering. The AAA-rated software giant is pricing 5-year, 10- and 30-year debt. Tuesday has to nonevent reports with the trade balance and treasury budget.

Commentary/New Issues

Corporate:
$3.75 BLN, Microsoft, Aaa/AAA, 3 part $2.0 BLN, 2.90%, 6/1/14, +95bp; $1.0 BLN, 4.20%, 6/1/19, +105bp; $750 MM, 6/1/39, +105bp(further details to follow)
$1.0 BLN, US Bancorp, 4.20%, 5/15/14, Aa3/AA, +215bp
$1.0 BLN, Allstate, A3/A-, 2 part $300 MM, 6.20%, 5/16/14, +420bp; $700 MM, 7.45%, 5/16/19, +430bp
$700 MM, Becton Dickinson, A2/AA-, 2 part $500 MM, 5.00%, 5/15/19, +190bp; $250 MM, 6.00%, 5/15/39, +190bp
$350, Southern Company, 4.15%, 5/15/14, A1/A, +212.5bp

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.