CREDIT MARKETS

Treasuries:
Treasuries posted their steepest first-half loss in three decades as reports showed signs of improvement in the US economy and the government sold record amounts of debt. Treasury prices fell Tuesday, pushing 10-year yields up for the first time in four days, after reports showed the pace of home-price declines may be slowing and a manufacturing report for June came in slightly better than expected. Manufacturing activity improved in the Chicago region in June, with the Chicago purchasing managers index rose to 39.9% in June from 34.9% in May. The Conference Board’s reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May. Prices pared the decline slightly as the Federal Reserve Bank of New York bought $7 billion in Treasuries maturing between 2016 and 2019 on Tuesday, the first of two buyback operations this week. Most Fed buybacks have been supportive of prices. The last time the central bank made purchases from this maturity range, it also took $7 billion. The buybacks are part of the central bank’s plans to keep a lid on borrowing costs, though Treasury yields and mortgage rates have increased lately in spite of the Fed’s efforts. The Labor Department will release its monthly employment report on Thursday as Independence Day will be observed on Friday.

Commentary/New Issues

Corporate:
$4.5 BLN, Oracle Corp, A2/A, 3 part $1.50 BLN, 3.75%, 7/8/14, +120bp;$1.75 BLN, 5.00%, 7/8/19, +155bp; $1.25BLN, 6.125%, 7/8/39, +185bp
$500 MM, MetLife, 10.75%, 8/1/69, Baa1/BBB, +641bp
$250 MM, Cytec Industries Inc., 8.95%, 7/1/17, Baa3/BBB-, +550.6bp

ABS:
(guidance) $1.5 BLN, HAROT 2009-3, ABS
(talk) $1.3 BLN, CFAST 09-A, ABS
(talk) $1.0 BLN, DCENT 09-A1, 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.

CREDIT MARKETS

Treasuries:
Treasury prices advanced Monday, pushing 10-year note yields to the lowest level in more than five weeks, after Chinese officials said the biggest holder of U.S. debt will keep its policy on foreign reserves stable. Longer-dated debt gained more than short-term securities as investors reversed trades that bet on long-term yields rising more due to inflation, greater debt issuance, and an economic recovery making other assets more attractive. On Tuesday and Wednesday, the Federal Reserve will resume buying long-term debt. The central bank may buy about $10 billion at the two operations. That would put the Fed on pace to finish buying its $300 billion in Treasuries by September, as originally stated in March. On Wednesday, the Institute for Supply Management’s index on manufacturing is expected to show the sector is still contracting. As for the week’s main event, the Labor Department will release its monthly non-farm payrolls report on Thursday as Independence Day will be observed on Friday. Economists predict that the unemployment rate will rise to 9.6 percent and that the economy will lose another 325,000 jobs.

Commentary/New Issues

Corporate:
$2.5 BLN, France Telecom, A3/A-, 2 part $1.25 BLN, 4.375%, 7/8/14, +195bp; $1.25 BLN, 5.375%, 7/8/19, +195bp
$520.11 MM, Autozone Inc., 5.75%%, 7/2/2019, Baa2/BBB, +325bp

ABS:
(price talk) $2.5 BLN, BAAT 09-1, ABS
(announced) $1.0 BLN, DCENT 09-A1, 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.

CREDIT MARKETS

Treasuries:
Treasury prices gained Friday, pushing 10-year notes towards the best weekly gain this year, after a government report on May personal income showed the lightest inflation since at least 1960. Treasuries looked set to end the week higher, after the government garnered plenty of demand at its auctions of $104 billion in debt. The Commerce Department said its measure of prices tied to spending patterns rose 0.1% from May 2008, the smallest annual gain since records began in 1960. Excluding food and fuel, prices rose 0.1% from a month earlier and were up 1.8% from a year earlier. The report also showed consumer spending rose 0.3% in May. Personal incomes jumped 1.4%, much more than the 0.5% anticipated, due to stimulus checks. At sales of 2-year, 5-year and 7-year debt this week, bidders offered to buy much more debt than was available at the sales. That factors out the changes to how different types of bidders are tallied, which dramatically pushed up the portion of each sale that went to indirect bidders. The shortened holiday week ahead will focus on the following: consumer confidence, ISM manufacturing, initial jobless claims, unemployment rate and non-farm payrolls.

Commentary/New Issues

Corporate:
$1.3 BLN, Credit Suisse, 3.496%, 7/2/2012, AA1/A+, +190bp
$300 MM, Campbell Soup Co., 3.375%, 8/15/2014, A2/A, +87.5bp

ABS:
(priced) $1.845 BLN, CHAIT 09-A5, ABS
(priced details) $259 MM, MSRR 2009-GG10, ABS
(announced) $1.1 BLN, SLMA 2009-C (TALF), 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.

CREDIT MARKETS

Treasuries:
Treasury prices advanced Thursday, sending 10-year note yields to the lowest this month, as the government again received strong demand at its last of three note sales this week. The Treasury Department sold $27 billion in 7-year notes at a yield of 3.329 percent. That’s the largest amount in at least 20 years, though none were issued between 1993 and 2009. Bidders offered $2.82 for every dollar of debt sold, the highest since the government re-introduced the securities in February. Indirect bidders bought 67.2 percent, the most in the same period and compared to an average of 33.2 percent of the last four sales. Earlier in the session, bonds were supported as the Federal Reserve bought $3.249 billion in securities maturing between 2026 and 2039. Treasuries also gained ground Thursday after the Labor Department said first-time jobless claims unexpectedly rose to the highest since mid-May, up 15,000 to 627,000 in the week ended June 20. Economists had expected unemployment claims to moderate to 600,000, continuing a recent trend of declining initial filings. Economic news for tomorrow will highlight personal income and spending and University of Michigan confidence.

Commentary/New Issues
Corporate:
$5.0 BLN, Citibank/Citi Fund, AAA/AAA, $1.75 BLN, 1.50%, 7/12/11, +41.4bp; $750 MM, 7/12/11, +3ML+0; $1.75 BLN, 2.125%, 7/12/99+55.1bp; $750 MM, 7/12/12,
+3ML+5
$400 MM, Jefferies Group, 8.50%, 7/15/19, Baa2/BBB, +512.5bp
$300 MM, Torchmark Corp., 9.25%, 6/15/19, Baa1/A, +571.6bp

ABS:
(re-open/laundh) $1.845 BLN, CHAIT 09-A5, 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.

CREDIT MARKETS

Treasuries:
Treasury prices turned down Wednesday, pushing yields higher for the first day in four, after the Federal Reserve issued a more positive statement about the economy and left unchanged its existing. Treasury and mortgage-related debt purchase programs. Bonds had been higher earlier after the government saw strong demand for its sale of a record $37 billion in 5-year notes. Bidders offered $2.58 for every dollar of debt being sold, the highest since at least January 2008. To date, the Fed has bought $177 billion of its planned $300 billion in Treasury purchases, according to Morgan Stanley. It’s purchased $98 billion of the promised $200 billion in housing-agency debt and $575 billion of the $1.25 in planned mortgage-backed securities. Indirect bidders, bought 62.8 percent, the highest since at least 2008 compared to an average of 38.5 percent at the last four sales. A separate report showed that sales of new homes stayed near record-low levels in May. Sales dropped 0.6 percent to a seasonally adjusted annual rate of 342,000 in May from a revised 344,000 in April. Economic news for tomorrow will focus on initial jobless claims and final GDP.

Commentary/New Issues

Corporate:
$1.5 BLN, Time Warner Cable, 6.75%, 6/15/39, Baa2/BBB, +260bp
$500 MM, Omnicom Group, 6.25%, 7/15/19, Baa1/A-, +275bp

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 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.

CREDIT MARKETS

Treasuries:
Treasury prices rose on Tuesday, getting a boost after the first of the government’s three big note sales this week received record demand from a group that includes overseas investors. In Tuesday’s auction, the Treasury Department sold $40 billion in 2-year notes at a yield of 1.151 percent, the most since November. Bidders offered $3.19 for every dollar of debt being sold, the highest since September 2007 and well above the average of $2.74 at the last five sales of the same amount. Indirect bidders, bought 68.7 percent, the biggest portion on record and more than the average of 39.8 percent seen across the previous five sales. Gains for Treasuries took hold earlier in the session after the National Association of Realtors reported that May existing-home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million. In other news, a senior official at Moody’s Investors Service said the triple-A credit rating on the U.S. government is solid but faces risk if the government is unable to lower public debt levels. The day ahead has the FOMC statement as well as the record $37 billion 5 year along with durable goods and new home sales.

Commentary/New Issues

Corporate:
$350 MM, Vepco, 5.00%, 6/30/19, Baa1/A-, +137.5bp

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 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.

CREDIT MARKETS

Treasuries:
Treasury prices advanced Monday, pushing yields lower, after the World Bank issued a more negative economic outlook and the Federal Reserve finished its first of two bond purchase operations this week. Yields started heading lower in the overnight session, pulling back as the World Bank said the global economy will shrink 2.9 percent this year, steeper than the 1.7 percent contraction it predicted in March. U.S. debt was also supported as the Federal Reserve bought about $7.5 billion in Treasuries maturing between 2013 and 2016. Dealers offered $20.7 billion to be purchased.
Analysts have closely watched the government’s frequent auctions for signals of whether investors, particularly foreign central banks, are still willing to buy U.S. debt in light of growing federal deficits and fears of inflation and a weakening dollar. The curve has been working to pull steeper with the 2-10-year yield spread heading out at 255 from a pre-Fed 253. The day ahead has the FOMC kick-off and existing home sales.

Commentary/New Issues

Corporate:
$4.25 BLN, Merck & Co, AA3/AA-, 4 part $1.25 BLN, 1.875%, 6/30/11, +75bp; $1.0 BLN, 4.00%, 6/30/15, +137.5bp; $1.25 BLN, 5.00%, 6/30/19, +140bp; $750 MM,
5.85%, 6/30/99, +145bp
$275 MM, Pennsylvania Turnpike Comission, 6.105%, 12/1/39, AA3/A+, +165bp

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 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.

CREDIT MARKETS

Treasuries: .
Treasury prices rose Friday as investors looked to take advantage of a recent rise in yields on the benchmark 10-year Treasury. U.S. debt was volatile in early trading, with skittishness ahead of next week’s debt sales. Ever-increasing amounts of debt supply had pushed Treasuries to their worst start to a year since 1986, when “Top Gun” was in the theaters. The Treasury Department is on its way towards selling more than $2 trillion this fiscal year to finance its economic stimuli and the Federal Reserve’s credit-easing mechanisms, including buying Treasuries and mortgage-related debt. Also on the radar, next Tuesday and Wednesday brings the Federal Reserve’s policy-setting Open Market Committee meeting. The Fed’s target rate is at a record low range of zero to 0.25 percent. The consumer price index rose 0.1 percent in May after being unchanged a month earlier. Investors also bought Treasuries as a safe heaven on Friday after Moody’s Investors Service said it is considering cutting California’s credit rating. Economic news for the week focus primarily on the FOMC meeting beginning on Tuesday.

Commentary/New Issues

Corporate:
$750 MM, General Dynamics, 1.80%, 7/15/11, A2/A, +80bp
$300 MM, Magellan Midstream Partners, 6.55%, 7/15/19, Baa2/BBB, +280bp

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 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.

Type: Series 2009 A-C Aa2/AAA

Amount: $798,010,000

CREDIT MARKETS

Treasuries:
Treasury prices turned higher Tuesday, pushing yields down a fourth day, as the Federal Reserve bought debt maturing in 2012 and 2013, the first of two such operations scheduled for this week. U.S. equities also turned negative, supporting bonds. U.S. debt was under pressure earlier as a pair of economic reports showed tame inflation and a surprising improvement in housing starts, adding support to the viewpoint that the U.S. economy is recovering. Treasuries garnered support after the Fed bought $6.45 billion in Treasuries, compared to an average of $6.25 billion at its previous four buybacks of similar-dated debt. Treasury traders have been defining a smaller range in yields, with expectations of further government debt sales and potential inflation pushing yields up, while continued concern about whether an economic recovery will indeed take root keeps investors interested in the relative safety of U.S. debt. Economic news tomorrow will focus on CPI and current account balance.

Commentary/New Issues

Corporate:
$831 MM, Dallas Area Rapid Transit, AA3/AAA, 2 part $361.83 MM, 6.249%, 12/1/34; $468.25 MM, 5.999%, 12/1/44
$389.69 MM, Continental Airlines, 9.00%, 7/8/16, Baa2/A-, +631.3bp
$300 MM, Valspar Corp, 7.25%, 6/15/19, Baa2/BBB, +362.5bp

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 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.