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.