CREDIT MARKETS

Treasuries: .
Treasury prices retraced losses Thursday, with benchmark 10-year yields heading lower, after the government’s final auction of the week garnered decent demand, relieving fears about another
poor showing in a week that has brought record issuance. The government now has no note or bond sales slated until Aug. 11, which also eases pressure on the market that has absorbed $235
billion in short-term bills and longer-term debt. The Treasury Department sold $28 billion in 7-year notes at a yield of 3.369 percent, less than traders expected. The amount is the most ever for
the security, just reintroduced this year after a long hiatus, as Washington seeks to spread out its growing debt needs. Bidders offer $2.63 for every dollar of 7-year notes sold, compared to an
average of $2.45 over the last three auctions. Indirect bidders took 60.3 percent of the sale. The closely watched group bought 67 percent of a prior sale in June, a huge jump from 33% at the
previous two offerings that was attributed to a change in the way bids were tabulated. The curve was flattened hard, with the 2- to 10-year yield spread running 244 from 253 early and things should
continue in that direction as the 2-year holds and the 10-year pulls higher. Economic news tomorrow will focus on GDP, PCE, employment cost and Chicago PMI.

Commentary/New Issues

Corporate
$5.0 BLN, Citibank, AAA/AAA, 2 part $2.5 BLN, 1.375%, 8/10/11, +26.3bp; $2.5 BLN, 2.250%, 12/10/12, +62.6bp

ABS:
(announced)$1.25 BLN, GEMNT 09-2, ABS
(announced)$500 MM, FNMNT 09-3, 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.

CREDIT MARKETS

Treasuries:
Two-year Treasuries reversed lower after Tuesday’s record auction received weaker demand than the government received last month, bucking gains along much of the yield curve. The U.S. Treasury Department said Tuesday it sold $42 billion in 2-year notes to demand that paled with the prior month’s auction. The Treasury awarded the notes at 1.08 percent, down from last month’s 1.151 percent. The bid-to-cover ratio fell to 2.75 from 3.19 last month. The indirect bid, a carefully watched category that includes foreign buyers, fell to 33 percent from 69 percent in the June auction. Investors have been sensitive to signs that foreign countries may pare their purchases of Treasuries, driving up interest rates. The two-year sale was the second of four long-term debt auctions this week. Including bills, the U.S. government plans to sell a record $235 billion this week. On Wednesday, the U.S. government plans to sell $39 billion in 5-year notes, followed by $28 billion in 7-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes were slated as the largest-ever auctions on record. Bond traders also digested some positive news about the housing market. U.S. home prices rose on a monthly basis for the first time since July 2006. Home prices in 20 selected metropolitan cities rose 0.5 percent in May compared with the previous month. Economic news tomorrow will focus on durable goods.

Commentary/New Issues

Corporate
Nothing

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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Monday, pushing yields up for the third session in four, after the government received record-high interest from investors for its first longer-term debt sale of the week. Bonds remained in the red as traders eyed the rest of a record $235 billion in government bills and notes up for sale this week. In the most important auction Monday, the Treasury Department sold $6 billion in inflation-indexed securities at a yield of 2.387 percent. Next week, the Treasury will announce how much in debt it intends to sell during the third quarter, which is also when officials would announce any changes to the TIPS issuance. The government will sell $42 billion in two-year notes on Tuesday, followed by $39 billion in five-year notes on Wednesday and $28 billion in seven-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes will all be the largest-ever auctions on record. The main economic data for Monday showed U.S. sales of new single-family homes jumping 11 percent in June to a seasonally adjusted annual rate of 384,000. The curve was traded off of recent steeps with the 2- to 10-year yield spread running 269. The market will be sealing with little in the way of data with the S&P/Case Shiler home price index and consumer confidence.

Commentary/New Issues

Corporate
$1.0 BLN, Nexen Inc, 2Baa3/BBB-, 2 part $300 MM, 6.20%, 7/30/19, +250bp; $750 MM, 7.50%, 7/30/39, +290bp
$850 MM, Northrop Grumman, Baa2/BBB, 2 part $350 MM, 3.70%, 8/1/14, +115bp; $500 MM, 5.05%, 8/1/19, +135bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices posted small declines on Friday, pushing yields towards a small but second weekly increase, as traders set up for debt issuance next week that will be more than many observers had anticipated. Treasury securities are headed toward their second weekly loss, though small. Yields on 10-year notes are up from 3.65 percent on July 17. Two-year yields are little changed on the week from 1 percent last Friday. Traders are also girding for the Treasury’s sale of $205 billion in short-term bills and notes next week. The government will start next week’s auctions with $6 billion in 20-year Treasury Inflation-Protected Securities. It will also sell $42 billion in two-year notes on Tuesday, followed by $39 billion in five-year notes on Wednesday and $28 billion in seven-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes will all be the largest-ever auctions on record. The only economic data of note for Friday, the final reading of the University of Michigan/Reuters index of consumer confidence for July, also worked against Treasuries. The index rose to 66, more than some had expected. Economic news for next week will focus on new home sales, consumer confidence, durable goods and 2nd quarter GDP.

Commentary/New Issues

Corporate
Nothing

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.

CREDIT MARKETS

Treasuries:
Treasury yields soared Thursday and prices traded broadly lower, as rallying U.S. stocks and indications that a massive amount of securities will be auctioned next week combined to reduce the appeal of government debt. Specifically, the Treasury will sell $42 billion in two-year notes, $39 billion in five-year notes, $28 billion in seven-year notes, and $6 billion in 20-year Treasury Inflation Protected Securities. On Wall Street, U.S. stocks surged anew, as signs of mergers-and-acquisition activity returned and as upbeat earnings season continued on a largely upbeat note.

The three major equities benchmarks — the S&P 500 index, the Dow Jones Industrial Average and the Nasdaq Composite all rallied more than 2 percent. The Dow broke above 9,000 points for the first time since January. Resales of U.S. single-family homes and condos rose 3.6 percent in June to a seasonally adjusted annual rate of 4.89 million, the highest level since last October. Earlier Thursday, the Labor Department said that first-time claims for state unemployment benefits bounced higher in the latest week, rising by 30,000 to 554,000. The four-week moving average of initial claims, a measure of the underlying trend, fell by 19,000 to 566,000. The Fed will be buying in the agencies tomorrow in the 2011 to 2013 range while data offers just U of M sentiment which is unlikely to offer any surprises, perhaps helping to calm volatile trade ahead of the weekend.

Commentary/New Issues

Corporate
$2.0 BLN, Bank of America, 6.50%, 8/1/16, A2/A, +330bp
$1.95 BLN, The Boeing Company; A2/A+, 3 part $750 MM, 3.50%, 2/15/15, +110bp;$750 MM, 4.875%, 2/15/20, +130bp; $450 MM, 5.875%, 2/15/40, +145bp
$1.2 BLN, St. Jude Medical, Baa1/A, 2 part $700 MM, 3.750%, 7/15/14, +120bp; $500 MM, 4.875%, 7/15/19, +132.5bp
$250 MM, BB&T, 3.10%, 7/28/11, A1/A, +210bp

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.

CREDIT MARKETS

Treasuries:
Longer-dated Treasury prices traded lower Wednesday, pushing up their yields, as analysts weighed comments from Federal Reserve Chief Ben Bernanke and the direction of U.S. stock markets. On Tuesday, Bernanke stressed the need for fiscal responsibility as he said the Fed isn’t close to changing its ultra-low interest-rate policy. In testimony on Wednesday before a panel of senators, he said any discussion of enacting a second stimulus package to prop up the economy is premature. First, mortgage applications rose a seasonally adjusted 2.8 percent last week from the prior week, marking the third straight weekly increase. And second, U.S. home prices rose 0.9 percent in May, the Federal Housing Finance Agency reported. Still, it said home prices have dropped 5.6 percent in the last year. The government plans to auction 20-year TIPS and 2, 5, and 7 year securities on four consecutive days starting on July 27. The sales are the second time the government will sell three so called coupon issues and a TIPS maturity in a single week since the Treasury started issuing securities regularly in 1976. Economic news for tomorrow will focus on initial jobless claims and existing home sales.

Commentary/New Issues

Corporate:
$1.0 BLN, BB&T, 3.85%, 7/27/12, A1/A, +237.5bp
$650 MM, GECC, 2.00%, 9/28/12, AAA/AAA, +56.5bp
$250 MM, H.J. Heinz Finance, 7.125%, 8/1/39, Baa2/BBB, +270bp

ABS:
Nothing

Agency:
$4.0 BLN, FHLB, 1.75%, 8/22/12, +35bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices gained ground Tuesday, pushing short-term yields to the lowest in two months, as Federal Reserve Chairman Ben Bernanke told Congress that he expects inflation to remain subdued through 2011 and that the central bank had the tools needed to end its many market-supporting programs. Bernanke also said the Fed will keep interest rates low for an extended time. The central bank’s target overnight lending rate between banks is currently set at a range of zero to a quarter of a percent. Also Tuesday, interest-rate futures traders reduced expectations that the Fed will raise the federal funds rate by the end of the year. As part of one of the central bank’s programs to support credit markets, the Federal Reserve Bank of New York bought $7 billion in Treasury securities maturing between 2016 and 2019. The amount was similar to the last time the central bank bought from this maturity range. The market will be in stuck in another light session that will be focused on stocks and anything new that might come out of Bernanke’s second day out.

Commentary/New Issues

Corporate:
Nothing

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.

CREDIT MARKETS

Treasuries:
Treasury prices turned higher Monday, pushing yields down, after several companies selling large bond deals prompted hedging in government debt. Expectations of big corporate bond sales can push around the government debt market as companies and traders enter into so-called rate lock agreements, in which they bet on Treasury prices falling to guard against the effect higher yields would have on the planned debt sale. Once the debt is sold, the hedges are reversed. In earlier trading, Treasuries fell amid rising optimism about the stability of the economy and financial system after commercial lender CIT Group reportedly received a private-sector bailout. Bonds remained under pressure after the Conference Board said its index of leading economic indicators rose 0.7 percent in June, the third straight monthly increase. With limited economic data this week, analysts will key in on comments from Federal Reserve Chief Ben Bernanke when he testifies before Congress starting Tuesday, with speculation that he may discuss ways to wind down the many programs initiated over the last year to support the economy and financial markets.

Commentary/New Issues

Corporate:
$2.5 BLN, Citigroup, 8.125%, 7/15/39, A3/A, +380bp
$800 MM, Bemis, Baa1/A, 2 part $400 MM, 5.65%, 8/1/14, +325bp; $400 MM, 6.80%, 8/1/19, +325bp
$500 MM. Wal-Mart, 6.20%, 4/15/38, AA2/AA, +130bp

ABS:
(pricing guidance) $367 MM, SLMA 2004-5, 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.

Type: Fiscal 2010 Series A Aa2/AAA

Amount: $800,000,000

CREDIT MARKETS

Treasuries:
Treasury prices turned lower Friday, pushing yields toward the biggest weekly increase in a month and a half, after government data showed that the nation’s housing construction improved more than anticipated last month. U.S. housing starts rose 3.6 percent in June to a seasonally adjusted rate of 582,000 on an annualized basis. Economists expected housing starts to turn in a pace of 531,000. Lower borrowing costs and plunging prices are making houses more affordable, helping to stem the decline in sales and alleviating the worst housing slowdown since the Great Depression. The 2 - 10 year spread has widened to 266 and is testing its high for the day. The fact that there are no 10 to 30 year auctions scheduled for next week should lend some support over the coming days. Economic highlights for next week will focus on the following: leading indicators, initial jobless claims, existing home sales, new home sales and U of M confidence.

Commentary/New Issues

Corporate:
Nothing

ABS:
(priced) $450 MM, AESOP 09-1, 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.