CREDIT MARKETS

Treasuries:
Treasury prices declined Thursday, pushing yields up from multi-month lows, after the government’s fourth and final major debt sale this week attracted sufficient demand from investors. The Treasury is using reopenings as a way to spread out the sales of increasing amounts of debt needed to finance the government’s and the Fed’s programs to revive the economy and ease credit-market strains. Thursday’s sale will mark the first time the government reopens the 30-year bond for both months between quarterly refundings, which are traditionally the government’s largest debt sales. Investors offered $2.36 for every dollar of debt available. The average bid-to-cover ratio, which measures investor demand compared to the amount of debt sold, averaged 2.56 during the last five 30-year reopenings — which used to be quarterly. Indirect bidders bought 50.2 percent of the sale, that compares to an average of 21.9 percent at the last five 30-year bond reopenings.
U.S. debt remained lower after the Labor Department reported initial claims for unemployment benefits dropped by 52,000 largely due to seasonal factors to 565,000 in the week ended July 4, the lowest since January. Economic news tomorrow will focus on University of Michigan Confidence and trade balance.

Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
$4.0 BLN, Fannie Mae, 1.75%, 8/10/12, +32bp

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.