CREDIT MARKETS

Treasuries:
Treasury prices headed lower Thursday, with 10-year note yields rising to the highest since November, after the Federal Reserve bought a lower portion of U.S. debt offered to it in its latest buyback. The central bank has bought more than $100 billion in Treasuries so far, well on its way to the $300 billion they plan to buy before autumn. Bond prices were higher in earlier trading as economic data in the U.S. and equity markets’ reaction to the Federal Reserve’s dour outlook on the economy doused investors’ hopes for a quick recovery from recession. The Labor Department said initial claims for unemployment benefits fell to a seasonally adjusted 631,000 in the week ending May 16. The curve was sent flying wider with the 2-10 year yield spread running out at 249.8 taking out steeps in a pretty straight line. Crude sank as general economic worries helped deflate demand expectations with July heading out at $61.05. The day ahead has an early close for the Memorial Day weekend.

Commentary/New Issues

Corporate:
$2.0 BLN, Hewlett-Packard, A2/A, 3 part; $750 MM, 5/27/11, +3ML+105bp; $1.0 BLN, 2.25%, 5/27/11, +140bp; $250 MM, 2.95%, 8/27/12, +160bp

ABS:
Nothing

Agency:
Nothing

The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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.