CREDIT MARKETS

Treasuries:
Treasury prices advanced Wednesday as yields pulled back to levels not seen since April, after a government report showed retail sales fell more than economists had expected last month, raising doubts about the ability of consumers to carry the economy out of recession. Treasuries started higher after the Commerce Department said retail sales dropped a seasonally adjusted 0.4 percent during April. Excluding an increase in automobiles, sales fell 0.5 percent. A separate report said prices for imported goods rose in April as petroleum prices increased. Excluding gas, prices fell 0.4%, indicating deflation is still a bigger risk than inflation in the near term. Treasuries stayed higher after the Federal Reserve said it would conduct five buybacks of U.S. bonds in the coming the next two weeks. There was already one operation scheduled for Thursday, when the U.S. central bank will purchase debt maturing between 2010 and 2011. The buybacks have supported the market as the fed acts as buyer of last resort in an effort to cap borrowing rates on everything from corporate bonds to consumer credit-card and mortgage debt. Economic news tomorrow will focus on PPI and initial jobless claims.

Commentary/New Issues

Corporate:
$3.0 BLN, American Express, A3/BBB+, 2 part $1.25 BLN, 7.250%, 5/20/14, +530bp; $1.75 BLN, 8.125%, 5/20/19, +505bp
$2.5 BLN, JPMorgan Chase, 4.65%, 6/1/14, Aa3/A+, +275.bp
$261.45 MM, Utah Transit Authority, 5.937%, 6/15/39, Aa3/AAA, +185bp

ABS:
Nothing

Agency:
$5.0 BLN, Fannie Mae, 2.50%, 5/15/14, +56bp

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.