CREDIT MARKETS

Treasuries: .
Treasury prices retraced losses Thursday, with benchmark 10-year yields heading lower, after the government’s final auction of the week garnered decent demand, relieving fears about another
poor showing in a week that has brought record issuance. The government now has no note or bond sales slated until Aug. 11, which also eases pressure on the market that has absorbed $235
billion in short-term bills and longer-term debt. The Treasury Department sold $28 billion in 7-year notes at a yield of 3.369 percent, less than traders expected. The amount is the most ever for
the security, just reintroduced this year after a long hiatus, as Washington seeks to spread out its growing debt needs. Bidders offer $2.63 for every dollar of 7-year notes sold, compared to an
average of $2.45 over the last three auctions. Indirect bidders took 60.3 percent of the sale. The closely watched group bought 67 percent of a prior sale in June, a huge jump from 33% at the
previous two offerings that was attributed to a change in the way bids were tabulated. The curve was flattened hard, with the 2- to 10-year yield spread running 244 from 253 early and things should
continue in that direction as the 2-year holds and the 10-year pulls higher. Economic news tomorrow will focus on GDP, PCE, employment cost and Chicago PMI.

Commentary/New Issues

Corporate
$5.0 BLN, Citibank, AAA/AAA, 2 part $2.5 BLN, 1.375%, 8/10/11, +26.3bp; $2.5 BLN, 2.250%, 12/10/12, +62.6bp

ABS:
(announced)$1.25 BLN, GEMNT 09-2, ABS
(announced)$500 MM, FNMNT 09-3, 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.