CREDIT MARKETS

Treasuries:
Treasury prices advanced Monday, pushing 10-year note yields to the lowest level in more than five weeks, after Chinese officials said the biggest holder of U.S. debt will keep its policy on foreign reserves stable. Longer-dated debt gained more than short-term securities as investors reversed trades that bet on long-term yields rising more due to inflation, greater debt issuance, and an economic recovery making other assets more attractive. On Tuesday and Wednesday, the Federal Reserve will resume buying long-term debt. The central bank may buy about $10 billion at the two operations. That would put the Fed on pace to finish buying its $300 billion in Treasuries by September, as originally stated in March. On Wednesday, the Institute for Supply Management’s index on manufacturing is expected to show the sector is still contracting. As for the week’s main event, the Labor Department will release its monthly non-farm payrolls report on Thursday as Independence Day will be observed on Friday. Economists predict that the unemployment rate will rise to 9.6 percent and that the economy will lose another 325,000 jobs.

Commentary/New Issues

Corporate:
$2.5 BLN, France Telecom, A3/A-, 2 part $1.25 BLN, 4.375%, 7/8/14, +195bp; $1.25 BLN, 5.375%, 7/8/19, +195bp
$520.11 MM, Autozone Inc., 5.75%%, 7/2/2019, Baa2/BBB, +325bp

ABS:
(price talk) $2.5 BLN, BAAT 09-1, ABS
(announced) $1.0 BLN, DCENT 09-A1, ABS

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.