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.