CREDIT MARKETS
Treasuries:
Treasuries posted their steepest first-half loss in three decades as reports showed signs of improvement in the US economy and the government sold record amounts of debt. Treasury prices fell Tuesday, pushing 10-year yields up for the first time in four days, after reports showed the pace of home-price declines may be slowing and a manufacturing report for June came in slightly better than expected. Manufacturing activity improved in the Chicago region in June, with the Chicago purchasing managers index rose to 39.9% in June from 34.9% in May. The Conference Board’s reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May. Prices pared the decline slightly as the Federal Reserve Bank of New York bought $7 billion in Treasuries maturing between 2016 and 2019 on Tuesday, the first of two buyback operations this week. Most Fed buybacks have been supportive of prices. The last time the central bank made purchases from this maturity range, it also took $7 billion. The buybacks are part of the central bank’s plans to keep a lid on borrowing costs, though Treasury yields and mortgage rates have increased lately in spite of the Fed’s efforts. The Labor Department will release its monthly employment report on Thursday as Independence Day will be observed on Friday.
Commentary/New Issues
Corporate:
$4.5 BLN, Oracle Corp, A2/A, 3 part $1.50 BLN, 3.75%, 7/8/14, +120bp;$1.75 BLN, 5.00%, 7/8/19, +155bp; $1.25BLN, 6.125%, 7/8/39, +185bp
$500 MM, MetLife, 10.75%, 8/1/69, Baa1/BBB, +641bp
$250 MM, Cytec Industries Inc., 8.95%, 7/1/17, Baa3/BBB-, +550.6bp
ABS:
(guidance) $1.5 BLN, HAROT 2009-3, ABS
(talk) $1.3 BLN, CFAST 09-A, ABS
(talk) $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.