CREDIT MARKETS

Treasuries:
Treasury prices declined Tuesday, pushing yields up, after a pair of reports said retail sales and wholesale prices rose more than forecast in June. Sales at retail stores rose 0.6 percent last month, the most in five months and mostly attributable to a bounce in auto sales and rising gasoline prices. That topped expectations for a 0.5 percent increase. Excluding automobiles, sales rose 0.3 percent, while Wall Street expected a 0.7 percent increase. The producer prices rose 1.8 percent in June, the most since November 2007 and more than the 1.2 percent expected. Excluding food and energy, so-called core prices increased 0.5 percent. Also providing some support for bonds, the Federal Reserve bought $7.5 billion in debt maturing in 2011 and 2012. Tomorrow’s data may be a mixed bag, with CPI expected to run a little hot and the manufacturing number to improve, but the late day FOMC minutes will likely keep a lid on things, but more positive earnings in concert with data could run the long end back to last week’s worst levels as thin trade exaggerates the swings.

Commentary/New Issues

Corporate:
$1.4 BLN, Carefusion, Baa3/BBB-, 3 part $250 MM, 4.125%, 8/1/12, +287.5bp; $450 MM, 5.125%, 8/1/14, +300bp; $700 MM, 6.375%, 8/1/19, +312.5bp

ABS:
(priced) $490 MM, CarMax 2009-A, 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.