CREDIT MARKETS

Treasuries:
Treasuries finished lower on Monday, erasing earlier gains and sending yields higher, as the market braced for the Treasury’s raising of $65 billion in funding this week. Bonds had gained earlier, boosted by a downgrade of Ireland’s credit rating and concerns over the future of the government led by U.K. Prime Minister Gordon Brown, which led some investors to seek the safety of U.S. government bonds. Bonds had gained earlier, benefiting from the latest round of purchases by the Federal Reserve, which bought $7.5 billion, mostly in notes expiring in 2015. Rising unemployment and ongoing weakness in the housing market are likely to prevent the central bank from increasing rates in 2009. The U.S. will auction $35 billion in three-year notes tomorrow, $19 billion in 10 year securities the next day, and $11 billion in 30 year bonds on June 11. The week ahead is fairly light in terms of economic data, but investors will key in on May retail sales on Thursday and the Federal Reserve’s Beige Book of economic conditions on Wednesday.

Commentary/New Issues

Corporate:
$500 MM, Pacific G&E, 6/10/10, +3ML+95bp

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.