CREDIT MARKETS

Treasuries:
Treasury prices gave up early gains and turned lower Monday, pushing yields up, as U.S. stock markets gained ground on optimism about improvement in the housing market. Treasuries stayed down after the National Association of Home Builders’ index on the sentiment of the industry improved to the highest level since September. Longer-dated Treasuries were higher earlier, supported by the Federal Reserve’s purchase of $3.18 billion in debt maturing from 2019 to 2026, slightly more than in recent operations involving that maturity range. The central bank has averaged buying more than $14 billion a week since it announced in March its plan to buy $300 billion in Treasuries. That puts the Fed on pace to reach that total amount by early August, which it may not want to do. The Fed will release the minutes of its April 29 Federal Open Markets Committee meeting on May 20 amid speculation the central bank will adjust its treasury buyback program. Economic news tomorrow will focus on housing starts and building permits.

Commentary/New Issues

Corporate:
$900 MM, EOG Resources, 5.625%, 6/1/19, A3/A-, +245bp
$850 MM, Aflac Inc., 8.50%, 5/15/19, A2/A-, +530bp
$750 MM, Kellogg, 4.45%, 5/30/16, A3/BBB+, +180bp

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.