CREDIT MARKETS

Treasuries:
Treasury prices advanced Thursday, pushing yields down for the first day in four, as markets remain jittery that lender CIT Group Inc. may be on the edge of going bankrupt. The troubles surrounding CIT served to remind investors of problems still brewing in financial markets, just as data showed a record number of U.S. foreclosures in the housing sector. Treasuries extended gains after initial claims for jobless benefits fell 47,000 to 522,000 in the week ended July 11. That’s the lowest level since January, though the agency cited seasonal factors. Treasuries extended gains after the Labor Department reported initial claims for jobless benefits fell 47,000 to 522,000 in the week ended July 11. That’s the lowest level since January, though the agency cited seasonal factors. The Fed has bought more than $200 billion in government debt since March in an effort to keep a lid on Treasury yields, which are the benchmarks for a broad range of corporate and consumer borrowing rates. The curve was steepened to trade 262.1 on the 2 - 10 year yield spread and has unwound some to 259. Economic data for tomorrow has housing starts and building permits.

Commentary/New Issues

Corporate:
$2.23 BLN, RAASGAS, Aa2/A, 3 parts $500 MM, 4.50%, 9/30/12, +300bp; $1.115 BLN, 5.50%, 9/30/14, +312.5bp; $615 MM, 6.75%, 9/30/19, +325bp
$256.3 MM, University of Missouri, AA2/AA, 5.96%, 11/1/39, at par

ABS:
(priced) $1.54 BLN, CHAIT 09-A6, 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.

CREDIT MARKETS

Treasuries:
Treasury prices fell Wednesday for a third day, after the Federal Reserve said the recession may be near its end and pondered the impact of buying more government debt. Fed policy-makers indicated that while the economy is certainly better than earlier this year, they believe the recovery is going to creep along at a slow rate that won’t lower the unemployment rate anytime soon. Regarding its ongoing program of purchasing Treasuries, the meeting summary indicated that officials worried about the market’s concerns that it would be monetizing the government’s debt, though officials considered buying more Treasuries. U.S. equities posted strong gains, after chip giant Intel reported quarterly sales and profit margins that were stronger than expected and issued an upbeat forecast. The Standard & Poor’s 500 Index rallied almost 2.8 percent. Treasuries extended the decline slightly after the Labor Department said consumer prices rose a seasonally adjusted 0.7 percent in June, matching analysts’ expectations, as gasoline prices jumped higher. Separately, the Treasury Department made its last call of 30-year bonds, in this case sold in 1984, to reduce the cost of its debt payments. Tomorrow offers the Fed TIPS buying operation as well as initial claims, TIC flows and Philly Fed.

Commentary/New Issues

Corporate:
$1.0 BLN, Goldman Sachs, 3.625%, 8/1/12, A1/A, +212.5bp
$500 MM, Rowan Companies inc., 7.875%, 8/1/19, Baa3/BBB-, +437.5bp

ABS:
Nothing

Agency:
$1.0 BLN, Freddie Mac, 1.750%, 6/15/12, +24bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Tuesday, pushing yields up, after a pair of reports said retail sales and wholesale prices rose more than forecast in June. Sales at retail stores rose 0.6 percent last month, the most in five months and mostly attributable to a bounce in auto sales and rising gasoline prices. That topped expectations for a 0.5 percent increase. Excluding automobiles, sales rose 0.3 percent, while Wall Street expected a 0.7 percent increase. The producer prices rose 1.8 percent in June, the most since November 2007 and more than the 1.2 percent expected. Excluding food and energy, so-called core prices increased 0.5 percent. Also providing some support for bonds, the Federal Reserve bought $7.5 billion in debt maturing in 2011 and 2012. Tomorrow’s data may be a mixed bag, with CPI expected to run a little hot and the manufacturing number to improve, but the late day FOMC minutes will likely keep a lid on things, but more positive earnings in concert with data could run the long end back to last week’s worst levels as thin trade exaggerates the swings.

Commentary/New Issues

Corporate:
$1.4 BLN, Carefusion, Baa3/BBB-, 3 part $250 MM, 4.125%, 8/1/12, +287.5bp; $450 MM, 5.125%, 8/1/14, +300bp; $700 MM, 6.375%, 8/1/19, +312.5bp

ABS:
(priced) $490 MM, CarMax 2009-A, 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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Monday, pushing yields up from near the lowest since May, as a lack of economic data and auctions on the schedule left traders eyeing equities and speculating on the strength of corporate earnings this week. Offsetting enthusiasm, officials at CIT Group, which specializes in lending to small and medium-sized businesses, were scrambling over the weekend to improve the group’s funding position and retained counsel to prepare for a possible reorganization in bankruptcy court, according to reports. For the Treasury market, Tuesday brings a retail sales report expected to show a gain of 0.5 percent in June, matching the prior month’s result. Also, the Federal Reserve will buy back U.S. debt in two operations this week. The curve worked its way steeper through the day in some corrective action with the 2-10 year spread heading out at 245. Benchmark U.S. stock indexes gained ahead of quarterly reports, including financial and technology heavyweights Goldman Sachs Group Inc. The Standard & Poor’s 500 Index rose 1.9 percent.

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.

CREDIT MARKETS

Treasuries:
Treasuries prices advanced Friday, adding to the longest streak of weekly yield declines this year, amid growing concerns about prospects for economic growth. The conclusion of $73 billion in U.S. debt auctions over the previous four days also eased some pressure on the bond market. The government has no note or bond auctions scheduled for two weeks. Ten-year note yields have fallen from 3.49 percent a week ago, in what would be the third decline in as many weeks. That would be the longest streak of weekly bond-price gains since December. Traders shrugged off a pair of economic reports that showed that prices of imported goods rose more than predicted and that the nation’s trade deficit unexpectedly narrowed. Import prices rose 3.2 percent in June, the largest increase since November 2007, as petroleum prices shot higher. Next week economic news will focus on PPI, CPI, initial jobless claims, housing starts and building permits.

Commentary/New Issues

Corporate:
$400 MM, Discover Fin Srvs, 10.25%, 7/15/19, Ba1/BBB-, +694.7bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices declined Thursday, pushing yields up from multi-month lows, after the government’s fourth and final major debt sale this week attracted sufficient demand from investors. The Treasury is using reopenings as a way to spread out the sales of increasing amounts of debt needed to finance the government’s and the Fed’s programs to revive the economy and ease credit-market strains. Thursday’s sale will mark the first time the government reopens the 30-year bond for both months between quarterly refundings, which are traditionally the government’s largest debt sales. Investors offered $2.36 for every dollar of debt available. The average bid-to-cover ratio, which measures investor demand compared to the amount of debt sold, averaged 2.56 during the last five 30-year reopenings — which used to be quarterly. Indirect bidders bought 50.2 percent of the sale, that compares to an average of 21.9 percent at the last five 30-year bond reopenings.
U.S. debt remained lower after the Labor Department reported initial claims for unemployment benefits dropped by 52,000 largely due to seasonal factors to 565,000 in the week ended July 4, the lowest since January. Economic news tomorrow will focus on University of Michigan Confidence and trade balance.

Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
$4.0 BLN, Fannie Mae, 1.75%, 8/10/12, +32bp

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.

Coupon: 1.375%

Maturity: 8/10/2011

Deal Size: $2,500,000,000

Rating: Aaa/AAA

CREDIT MARKETS

Treasuries:
Treasury prices jumped Wednesday, pushing 10-year yields to the lowest in about seven weeks, after the U.S. government garnered record demand for $19 billion in the benchmark securities, the third of four major auctions this week. The Treasury Department sold the 10-year notes at a yield of 3.365 percent, well below where it was expected to come. Bidders offered $3.28 for every dollar sold, compared to $2.62 at the last auction in June, the highest so-called bid-to-cover since at least 1995. Indirect bidders bought 43.9 percent of the sale, compared to 34 percent last month, though the proportion of sales going to indirect bidders jumped significantly last month after a change in the way bids are tabulated. The Treasury is using reopenings as a way to spread out the sales of increasing amounts of debt needed to finance the government’s and the Fed’s programs to revive the economy and ease credit-market strains. Thursday’s sale will mark the first time the government reopens the 30-year bond for both months between refunding. Tomorrow’s economic news will focus on initial jobless claims and wholesale inventories.

Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

Type: Series 2009 A MIG1/SP-1+

Amount: $700,000,000

CREDIT MARKETS

Treasuries:
Treasury prices advanced Tuesday, pushing 10-year yields to the lowest in more than a month, after the government sold $35 billion in 3-year notes, the second of four major debt sales this week The government sold the 3-year notes at a yield of 1.519 percent, a little higher than the to-be-issued securities were trading before the results. Bidders offered to buy 2.62 times the amount of debt sold, compared to 2.82 times at last month’s sale of the same amount. Indirect bidders bought 54 percent of the sale, compared to 43.8 percent last month. The proportion of sales going to indirect bidders appears to have jumped significantly last month after a change in the way bids are tabulated. For the balance of the week, the Treasury will sell $19 billion in 10-year notes on Wednesday, followed by $11 billion in 30-year bonds on Thursday. The curve was spun well flatter back to Thursday levels with the 2-10 year yield spread now 248. Economic news for tomorrow will focus on the uninteresting consumer credit report.

Commentary/New Issues

Corporate:
$2.5 BLN, Barclays Bank PLC, 5.20%, 7/10/14, AA3/AA-, +287.5bp
$300 MM, Intersate P&L, 6.25%, 7/15/39, A3/BBB+, +195bp
$250 MM, Wisconsin P&L, 5.00%, 7/15/19, A2/A-, +160bp

ABS:
(priced) $3.9 BLN, BAAT 09-1, ABS
(priced) $1.3 BLN, CFAST 09-A, ABS
(priced) $1.02 BLN, FORDO 2009-C, 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.