CREDIT MARKETS

Treasuries:
Treasury prices turned higher Wednesday, after 10-year yields touched the highest level in five months, supported by a strong reception at the government’s auction of a record amount of 10-year notes. The Treasury Department sold $22 billion in new notes maturing in May 2019 to yield 3.190 percent. Investors offered $2.47 for every dollar of debt available, compared to an average of $2.36 at the last four auctions. Indirect bidders, bought 31.9 percent of the auction, the highest since February. Direct bidders, bought 4.3 percent, an unusually high proportion. A higher portion of the auction going to direct and indirect bidders shows more demand from investors for the notes, versus primary dealers having to buy more and then resell them into the market. The government’s bond sales have received extra attention in recent months as an indication of how well the U.S. can finance all the economic stimulus and financial market stability programs lawmakers and the Federal Reserve have enacted. The auction was the second portion of the government’s quarterly refunding this week, to be followed Thursday by $14 billion in 30-year bonds.
The Fed will continue its buybacks with three operations next week, heading towards purchasing $300 billion in Treasury securities over the next six months. So far, it has purchased $88.366 billion. The ADP employment index reported that the private-sector employment fell by 491,000 jobs in April, less than some analysts were bracing for today. The non-farm payroll number on Friday is expected to show 580,000 jobs were loss in April.

Commentary/New Issues

Corporate:
$2.0 BLN, GECC, 5.90%, 5/13/14, Aa2/AA+, +387.5bp
$1.5 BLN, Husky Energy, Baa2/BBB+, 2 part $750 MM, 5.90%, 6/15/14, +387.5
$300 MM, DTE Energy, 7.625%, 5/15/14, Baa2/BBB-, +561bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Tuesday, keeping 10-year-note yields near five-month highs, after the government saw strong demand for $35 billion in 3-year notes, the first of three big note and bond auctions this week. The Treasury Department sold the 3-year notes to yield 1.473 percent. The amount matches last month’s sale as the most on record. Bidders offered $2.66 for every dollar available, the most since February. Indirect bidders, bought 37.3 percent of the sale, compared to 37.9 percent on average at the last four offerings. However, direct bidders, another group that includes funds buying for their own accounts, bought 6.1 percent, the most since at least 2003. Treasuries remained lower after the Institute of Supply management’s survey of non-manufacturing businesses rose more than analysts expected to 43.7 in April, from 40.8 the previous month. Federal Reserve Chairman Ben Bernanke said the economy is bottoming out and may improve later this year if the gradual repair of the banking system continues. Economic news tomorrow will focus on ADP Employment and the 10-year auction.

Commentary/New Issues

Corporate:
$1.5 BLN, Bank of NY Mellon, Aa2/AA-, 2 part $1.0 BLN, 4.30%, 5/15/14, +225bp; $500 MM, 5.45%, 5/15/19, +230bp
$250 MM, Hospira, 6.40%, 5/15/15, Baa3/BBB, +437.5bp

ABS:
(priced) $2.59 BLN, SLMA 09-B, ABS
(priced) $1.75 BLN, Volkswagen 2009-A, ABS
(priced) $500 MM, Harley-Davidson 09-1, ABS

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.

CREDIT MARKETS

Treasuries:
Treasury prices fell Monday, pushing 10-year note yields near their highest level since November, after a private group said pending home sales rose in March, buoying hopes that the housing downturn may be ending. Losses were limited as the Federal Reserve stepped up as a buyer of last resort and bought more than $3 billion in U.S. debt maturing between 2019 and 2026. The Treasury plans to auction $35 billion in three-year notes on May 5, $22 billion in 10 year debt May 6 and $14 billion in 30 year bonds May 7. The Fed and U.S. banking regulators will reveal the results from stress tests on the nation’s biggest banks on May 7, three days later than previously planned. The government announcements will disclose both aggregate information about the capital buffer required to absorb losses if the recession worsens and firm-specific details. Economic news tomorrow will focus on ABC Consumer Confidence. The market is focused on the monthly employment report for April, it will be released on Friday.

Commentary/New Issues

Corporate:
$1.0 BLN, International Paper; 9.375%, 5/15/19, Baa2/BBB, +658.7bp
$350 MM, Cigna Corp., 8.50%, 5/1/19, Baa2/BBB, +537.5bp

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.

CREDIT MARKETS

Treasuries:
Treasuries fell on Friday, sending yields higher, as U.S. manufacturing data helped boost hopes that the worst of a global recession might be behind, leading investors away from safe assets. In addition, the market is absorbing huge amounts of debt issued by the government to fund its recovery efforts. This week, the Treasury Department will auction a record $71 billion in notes and bonds in its quarterly refunding. The ISM index rose to 40.1 last month, up from 36.3 and above the economist’ forecast of 38. Pumped up by faith in the current administration’s policies, U.S. consumer sentiment rose in April, but remained at relatively low levels, according to a survey released Friday by the University of Michigan and Reuters. The consumer sentiment index rose to 65.1 from 57.3 in March. In mid-April the estimate was 61.9. Economists were looking for a final April result of 62. The April result is the highest since September 2008, indicating the rally in the stock market and a possible bottom for the recession may be perking up consumers. The index hit a 28-year low of 55.3 in November. Treasury prices had the biggest monthly drop in April since January as the Fed said the economy shows signs of stabilizing and the pace of government debt sales accelerated. Economic news for the week will be the non-farm payroll report on Friday, economist predict that 600,000 jobs were loss in April.

Commentary/New Issues

Corporate:
$1.4 BLN, BP Capital Markets, 3.625%, 5/8/14, Aa1/AA, +165bp
$300 MM, Rockwell Collins, 5.25%, 7/15/19, A1/A, +215bp
$300 MM, Coca-Cola Enterprises, 4.25%, 3/1/15, A3/A, +200bp

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.

Coupon: 4.30%

Maturity: 5/15/2014

Deal Size: $1,000,000,000

Rating: Aa2/AA-

Coupon: 5.45%

Maturity: 5/15/2019

Deal Size: $500,000,000

Rating: Aa2/AA-