CREDIT MARKETS

Treasuries:
Treasury prices declined Monday, pushing yields up for the third session in four, after the government received record-high interest from investors for its first longer-term debt sale of the week. Bonds remained in the red as traders eyed the rest of a record $235 billion in government bills and notes up for sale this week. In the most important auction Monday, the Treasury Department sold $6 billion in inflation-indexed securities at a yield of 2.387 percent. Next week, the Treasury will announce how much in debt it intends to sell during the third quarter, which is also when officials would announce any changes to the TIPS issuance. The government will sell $42 billion in two-year notes on Tuesday, followed by $39 billion in five-year notes on Wednesday and $28 billion in seven-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes will all be the largest-ever auctions on record. The main economic data for Monday showed U.S. sales of new single-family homes jumping 11 percent in June to a seasonally adjusted annual rate of 384,000. The curve was traded off of recent steeps with the 2- to 10-year yield spread running 269. The market will be sealing with little in the way of data with the S&P/Case Shiler home price index and consumer confidence.

Commentary/New Issues

Corporate
$1.0 BLN, Nexen Inc, 2Baa3/BBB-, 2 part $300 MM, 6.20%, 7/30/19, +250bp; $750 MM, 7.50%, 7/30/39, +290bp
$850 MM, Northrop Grumman, Baa2/BBB, 2 part $350 MM, 3.70%, 8/1/14, +115bp; $500 MM, 5.05%, 8/1/19, +135bp

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.