CREDIT MARKETS

Treasuries:
Treasuries fell on Friday, sending yields higher, after a report showed core inflation rose in April while manufacturing data from the New York region were not as bad as feared. The government said U.S. consumer prices were unchanged in April after seasonal adjustments. They have fallen 0.7 percent in the past 12 months, the largest decline in 54 years. But core inflation — which excludes volatile food and energy prices — rose 0.3 percent, boosted by a 9.3 percent increase in tobacco prices. Over the past year, the core CPI is up 1.9 percent. Bonds have come under pressure in recent months from massive supply of debt issued by the government to fund its financial and economic rescue plans. But the Federal Reserve has also intervened to buy Treasury bonds to prevent yields, which are used as benchmarks for many consumer loans, from rising too high. Another source of pressure for bonds has been hopes that the U.S. economy has stopped deteriorating as fast as before. However, those hopes have been somewhat curbed over the past week, by factors including disappointing April retail sales numbers. Economic news for the week will focus on housing starts, building permits and initial jobless claims.

Commentary/New Issues

Corporate:
$2.0 BLN, Citigroup, 8.50%, 5/22/19, A3/A, +562.5bp

ABS:
(priced) $1.0 BLN, CHAIT 09-A3, ABS

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.