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.