CREDIT MARKETS

Treasuries:
Treasuries pared losses Tuesday after the government’s sale of $40 billion in 2-year notes garnered strong demand from a key group of investors. Treasury prices remained under pressure, pushing 10-year yields up to the highest since November, after a report showed consumer confidence surged more than predicted this month, supporting hopes that the economy may soon improve. Treasuries came under pressure after the Conference Board’s reading on U.S. consumer confidence surged to 54.9 in May, the highest in eight months, from an upwardly revised 40.8 in April. The Treasury Department sold $40 billion in 2-year notes to yield 0.940%, in the first of three large note auctions this week totaling $101 billion. The curve was twisted steeper with the 2 - 10 year yield spread now running 263. The day ahead has more housing data with existing home sales, which should see a boost on the heels of falling prices and rates. The Fed will be in buying bonds outright in the 3 to 4 year area while Treasury will follow with record $35 billion in 5 years.

Commentary/New Issues

Corporate:
$1.25 BLN, MetLife, 6.75%, 6/1/16, A2/A-, +375bp

ABS:
Nothing

Agency:
$250 MM, FHLMC 3.00%, 6/9/14

New Issues larger than $250mm. 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.