CREDIT MARKETS

Treasuries:
Financial stocks rose as skittish investors, who had shed shares after a weak Treasury auction during the prior session, bought them back after a stronger sale Thursday. The U.S. government sold $26 billion in 7-year Treasury notes at a yield of 3.30 percent. The auction received 2.26 times in bids more than the amount for sale, a little lower than the average of the last three auctions, when the government reintroduced the long-absent security to its auction calendar. Bond prices also gained support in Thursday’s action from weaker-than-expected housing data and dour employment figures, adding to fears about the potential for higher borrowing costs to short-circuit any economic recovery. As for Thursday’s economic data, the Labor Department said the number of continuing claims to collect jobless benefits rising to nearly 6.8 million, a record. Separately, the Commerce Department said sales of new homes were nearly unchanged in April, while economists had predicted an increase. A separate report said durable-goods orders rose more than predicted last month. The day ahead has GDP, Chicago PMI and U of M.

Commentary/New Issues

Corporate:
$5.0 BLN, Citi Funding/Citibank, Aaa/AAA, 4 part $1.4 BLN, 1.25%, 6/3/11, +38.4bp; $1.1 BLN, 6/3/11, +3ML-5bp; $1.3 BLN, 1.875%, 6/4/12, +48bp; $1.2 BLN, 6/4/12,
+3ML-3bp
$2.5 BLN, Bank of America, 7.625%, 6/1/19, A2/A, +410bp
$1.5 BLN, Morgan Stanley, A2/A, 2 part $500 MM, 6.00%, 5/13/14, +360bp; $1.0 BLN, 7.30%, 5/13/19, +360bp
$500 MM, Travelers Cos., 5.90%, 6/2/19, A2/A-, +225bp

ABS:
(talk) $1.0 BLN, AMXCA 09-1, ABS
(guidance) $834 MM, FCALT 2009-A, ABS

Agency:
Nothing

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.