CREDIT MARKETS

Treasuries:
Treasury prices rose Monday, pushing 2-year note yields to their lowest level in about a month, as bond traders focused on renewed concerns about the trajectory for growth in the global economy. Treasuries stayed in the green as the Federal Reserve Bank of New York bought $7 billion in Treasuries maturing between 2013 and 2016, the first of two buyback operations this week. Treasuries remained mixed after data on the U.S. services sector from the Institute of Supply Management came in better than economists expected. Bonds remained in the green after the Treasury Department sold $8 billion in 10-year Treasury Inflation Protected Securities to yield 1.920 percent. Bidders offered $2.51 for every dollar of debt offered, the highest so-called bid-to-cover in at least seven years. The Treasury is using re-openings 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. This will be the first time the government reopens the so-called long bond for both months between refundings. Economic news tomorrow will focus on ABC Consumer Confidence.

Commentary/New Issues

Corporate:
Nothing

ABS:
(launch) $3.9 BLN, BAAT 09-1, ABS
(launch) $1.3 BLN, CFAST 09-A, ABS
(launch) $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.

CREDIT MARKETS

Treasuries:
Treasury prices rose Thursday, pushing 2-year note yields to the lowest in about a month, after the Labor Department said the U.S. economy shed many more jobs than expected, raising concerns that continued weakness in consumer spending will slow the economy’s recovery. The economy lost 467,000 jobs in June, and the nation’s unemployment rate rose to 9.5%, with both figures looking worse than in May. Separately, a weekly report on jobless claims for the week ended June 27 showed 614,000 Americans filed for first-time unemployment benefits. U.S. debt remained strong after the Treasury Department said it will sell $73 billion in debt next week, less than some analysts anticipated. The government said it will sell $8 billion in 10-year inflation-indexed debt on Monday, followed a day later by $35 billion in 3-year notes. Wednesday will bring $19 billion in 10-year notes, with another $11 billion in 30-year notes on Thursday. Those amounts match last month’s sales. The Treasury is using re-openings 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. This will be the first time the government reopens the so-called long bond for both months between refundings. I wish everybody a safe and pleasant Fourth of July.

Commentary/New Issues
Corporate:
Nothing

ABS:
(priced) $1.1 BLN, SMA 2009-C (TALF), 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 ended narrowly mixed Wednesday as investors’ appetite for risk increased. ADP Employment Services said private companies cut 473,000 jobs in June, raising questions about how fast the economy may improve. The Federal Reserve Bank of New York bought $2.999 billion in Treasuries maturing between 2019 and 2026 on Wednesday. Dealers offered $9.493 billion to be purchased. The buybacks are part of the central bank’s plans to keep a lid on borrowing costs, though Treasury yields and mortgage rates have increased lately in spite of the Fed’s efforts.
Longer-dated debt may also be under more pressure as traders await the Treasury Department’s announcement Thursday on how much in debt it will auction next week. 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. This will be the first time the government reopens the so-called long bond for both months between refundings. Economists are predicting that US companies cut 365,000 workers, pushing the unemployment rate to 9.6 percent for the month of June.

Commentary/New Issues

Corporate:
$250 MM, MidAmerican Energy, 3.15%, 7/15/12, Baa1/BBB+, +160bp

ABS:
(priced) $1.5 BLN, DCENT 09-A1, ABS
(pricing terms) $666 MM, CIT Education LT 09-1, 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.

Coupon: 2.25%

Maturity: 12/10/2012

Deal Size: $2,500,000,000

Rating: Aaa/AAA

Coupon: 10.75%

Maturity: 8/1/2039

Deal Size: $500,000,000

Rating: Baa1/BBB