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.