CREDIT MARKETS

Treasuries:
Treasury prices fell Wednesday for a third day, after the Federal Reserve said the recession may be near its end and pondered the impact of buying more government debt. Fed policy-makers indicated that while the economy is certainly better than earlier this year, they believe the recovery is going to creep along at a slow rate that won’t lower the unemployment rate anytime soon. Regarding its ongoing program of purchasing Treasuries, the meeting summary indicated that officials worried about the market’s concerns that it would be monetizing the government’s debt, though officials considered buying more Treasuries. U.S. equities posted strong gains, after chip giant Intel reported quarterly sales and profit margins that were stronger than expected and issued an upbeat forecast. The Standard & Poor’s 500 Index rallied almost 2.8 percent. Treasuries extended the decline slightly after the Labor Department said consumer prices rose a seasonally adjusted 0.7 percent in June, matching analysts’ expectations, as gasoline prices jumped higher. Separately, the Treasury Department made its last call of 30-year bonds, in this case sold in 1984, to reduce the cost of its debt payments. Tomorrow offers the Fed TIPS buying operation as well as initial claims, TIC flows and Philly Fed.

Commentary/New Issues

Corporate:
$1.0 BLN, Goldman Sachs, 3.625%, 8/1/12, A1/A, +212.5bp
$500 MM, Rowan Companies inc., 7.875%, 8/1/19, Baa3/BBB-, +437.5bp

ABS:
Nothing

Agency:
$1.0 BLN, Freddie Mac, 1.750%, 6/15/12, +24bp

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.