CREDIT MARKETS

Treasuries:
Two-year Treasuries reversed lower after Tuesday’s record auction received weaker demand than the government received last month, bucking gains along much of the yield curve. The U.S. Treasury Department said Tuesday it sold $42 billion in 2-year notes to demand that paled with the prior month’s auction. The Treasury awarded the notes at 1.08 percent, down from last month’s 1.151 percent. The bid-to-cover ratio fell to 2.75 from 3.19 last month. The indirect bid, a carefully watched category that includes foreign buyers, fell to 33 percent from 69 percent in the June auction. Investors have been sensitive to signs that foreign countries may pare their purchases of Treasuries, driving up interest rates. The two-year sale was the second of four long-term debt auctions this week. Including bills, the U.S. government plans to sell a record $235 billion this week. On Wednesday, the U.S. government plans to sell $39 billion in 5-year notes, followed by $28 billion in 7-year notes on Thursday. The amount of 2-year, 5-year and 7-year notes were slated as the largest-ever auctions on record. Bond traders also digested some positive news about the housing market. U.S. home prices rose on a monthly basis for the first time since July 2006. Home prices in 20 selected metropolitan cities rose 0.5 percent in May compared with the previous month. Economic news tomorrow will focus on durable goods.

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.