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.