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.