CREDIT MARKETS

Treasuries:
Treasury yields soared Thursday and prices traded broadly lower, as rallying U.S. stocks and indications that a massive amount of securities will be auctioned next week combined to reduce the appeal of government debt. Specifically, the Treasury will sell $42 billion in two-year notes, $39 billion in five-year notes, $28 billion in seven-year notes, and $6 billion in 20-year Treasury Inflation Protected Securities. On Wall Street, U.S. stocks surged anew, as signs of mergers-and-acquisition activity returned and as upbeat earnings season continued on a largely upbeat note.

The three major equities benchmarks — the S&P 500 index, the Dow Jones Industrial Average and the Nasdaq Composite all rallied more than 2 percent. The Dow broke above 9,000 points for the first time since January. Resales of U.S. single-family homes and condos rose 3.6 percent in June to a seasonally adjusted annual rate of 4.89 million, the highest level since last October. Earlier Thursday, the Labor Department said that first-time claims for state unemployment benefits bounced higher in the latest week, rising by 30,000 to 554,000. The four-week moving average of initial claims, a measure of the underlying trend, fell by 19,000 to 566,000. The Fed will be buying in the agencies tomorrow in the 2011 to 2013 range while data offers just U of M sentiment which is unlikely to offer any surprises, perhaps helping to calm volatile trade ahead of the weekend.

Commentary/New Issues

Corporate
$2.0 BLN, Bank of America, 6.50%, 8/1/16, A2/A, +330bp
$1.95 BLN, The Boeing Company; A2/A+, 3 part $750 MM, 3.50%, 2/15/15, +110bp;$750 MM, 4.875%, 2/15/20, +130bp; $450 MM, 5.875%, 2/15/40, +145bp
$1.2 BLN, St. Jude Medical, Baa1/A, 2 part $700 MM, 3.750%, 7/15/14, +120bp; $500 MM, 4.875%, 7/15/19, +132.5bp
$250 MM, BB&T, 3.10%, 7/28/11, A1/A, +210bp

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.