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. The bond market also has some relief as there are no note, or bond, auctions scheduled this week. Yields indicate credit markets continue to thaw. The cost of borrowing in dollars between banks had its biggest two-day drop in more than four months amid confidence record low interest rates and a recovery among financial institutions is boosting lending. Minutes of the April 29 FOMC meeting will be released tomorrow.

Commentary/New Issues

Corporate:
$2.0 BLN, Barclays Bank, 6.75%, 5/22/19, AA3/AA-, +355bp
$1.0 BLN, Capital One Financial, 7.375%, 5/23/14, Baa1/BBB+, +540bp
$500 MM, State Street Corp., 4.30%, 5/30/14, A1/A+, +220bp
$300 MM, PPL Electric Utilities, 6.25%, 5/15/39, A3/A-, +210bp

ABS:
Nothing

Agency:
$6.0 BLN, FHLMC, 1.75%, 6/15/12, +46.5bp

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.