CREDIT MARKETS

Treasuries:
Treasury prices turned down Wednesday, pushing yields higher for the first day in four, after the Federal Reserve issued a more positive statement about the economy and left unchanged its existing. Treasury and mortgage-related debt purchase programs. Bonds had been higher earlier after the government saw strong demand for its sale of a record $37 billion in 5-year notes. Bidders offered $2.58 for every dollar of debt being sold, the highest since at least January 2008. To date, the Fed has bought $177 billion of its planned $300 billion in Treasury purchases, according to Morgan Stanley. It’s purchased $98 billion of the promised $200 billion in housing-agency debt and $575 billion of the $1.25 in planned mortgage-backed securities. Indirect bidders, bought 62.8 percent, the highest since at least 2008 compared to an average of 38.5 percent at the last four sales. A separate report showed that sales of new homes stayed near record-low levels in May. Sales dropped 0.6 percent to a seasonally adjusted annual rate of 342,000 in May from a revised 344,000 in April. Economic news for tomorrow will focus on initial jobless claims and final GDP.

Commentary/New Issues

Corporate:
$1.5 BLN, Time Warner Cable, 6.75%, 6/15/39, Baa2/BBB, +260bp
$500 MM, Omnicom Group, 6.25%, 7/15/19, Baa1/A-, +275bp

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.