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.