CREDIT MARKETS

Treasuries:
Treasury prices were little changed before a report the nonfarm payroll report will show employers cut jobs last month at a slower pace than in June and as the U.S. prepared to sell a record $75 billion of notes and bonds next week. Ten year note yields rose this week, touching their highest levels since June as reports showing improvement in the world’s largest economy spurred investors toward riskier assets. Jobless claims fell by 38,000 to 550,000 in the week ended August 1st. Thursday’s report also said continuing unemployment claims rose to 6.31 million in the prior week, in part still reflecting seasonal factors related to auto-industry workers. The U.S. central bank is more than two-thirds of the way through the $300 billion in US debt it promised in March to buy in an effort to keep borrowing costs, particularly for companies and homebuyers, affordable. The difference between 2 - 10 year Treasury yields widened to 2.55 percentage points, from 2.37 percentage points at the end of last week, as investors sought higher yields on longer maturities because of the threat that government efforts to spur the economy will lead to faster inflation. Economists are looking for a loss of 350,000 jobs in July, after loss of 467,000 in June. Be ready for anything tomorrow after the jobs report. Could provide for an interesting day !

Commentary/New Issues

Corporate:
$2.0 BLN, BP Capital Markets, Aa1/AA, 2 part $750 MM, 1.550%, 8/11/11, +40bp; $1.25 BLN, 3.875%, 3/10/15, +75bp
$500 MM, Duke Realty Corp., Baa2/BBB, 2 part $250 MM, 7.375%, 2/15/15, +479.2bp; $250 MM, 8.250%, 8/15/19, +463.3bp
$500 MM, Macquaire Group, 7.625%, 8/13/19, A2/A-, +395bp

ABS:
(priced) $1.396 BLN, SLCLT 09-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 turned lower Wednesday, pushing yields to the highest level since June in volatile trading, after one of the biggest bond-trading firms raised its outlook for U.S. growth and economic reports showed improvements in employment and factories. Bonds had been lower earlier in the session after ADP said private-sector employment in the U.S. fell by an estimated 371,000 jobs, the fewest losses since October. The Treasury Department said it will issue $75 billion in notes and bonds next week. The department will auction $37 billion in 3-year notes, $23 billion in 10-year notes and $15 billion in 30-year bonds to refund $60.9 billion in maturing securities and raise $14.1 billion. Also supporting bonds, the Federal Reserve Bank of New York bought $7.248 billion in Treasuries on Wednesday, the first of two operations this week. Dealers submitted to the Fed $17.913 billion in debt maturing between 2013 and 2016. When the central bank bought from this maturity range a month ago, it purchased $7 billion. The day ahead offers initial claims, which are expected to improve some.

Commentary/New Issues

Corporate:
$2.5 BLN, Citigroup, 6.375%, 8/12/14, A3/A, +380bp
$400 MM, Metro Washington Airports Authority, 7.462%, 10/1/46, Baa1/BBB+, +300bp
$300 MM, AGL Capital, 5.25%, 8/15/19, Baa1/BBB+, +162.5

ABS:
(priced) $1.75 BLN, GEDFT 09-1, ABS
(priced) $310 MM, WFNMNT 09-C, ABS
(priced) $474.68 MM, WFNMT 09-B, ABS
(priced) $500 MM, GEDFT 09-1, ABS

Agency:
$4.5 BLN, Freddie Mac, 2.125%, 09/21/12, AAA/AAA, +37.5bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices dropped Tuesday, sending yields on 10-year notes to the highest in more than six nweeks, after the National Association of Realtors said pending sales of existing homes rose 2.6 percent in June, a fifth straight monthly gain. Treasuries had been supported in earlier trading as investors stepped back from an equity-buying binge, and pared losses in late trading as stocks headed back down. Treasuries held on to gains early in the day after consumer spending in the U.S. rose 0.4 percent in June, slightly better than economists had expected. Personal income fell 1.3 percent, reversing the May gain from stimulus payments. Bond traders expect prices to remain in a fairly tight range ahead of the U.S. employment report for July, set to be released on Friday.
Economists are predicting that 350,000 jobs were lost and the unemployment rate rose to 9.7 percent in July. Also weighing on bonds, the Treasury Department will announce on Wednesday how much debt it will auction next week. The U.S. is expected to sell $37 billion in three year notes, $23 billion in 10-year notes and $15 billion in 30-year bonds.

Commentary/New Issues

Corporate:
$2.75 BLN, Dow Chemical Co, Baa3/BBB-, 3 part $250 MM, 8/8/11, +3L+225bp; $600 MM, 6.05%, 8/15/21, +237.5bp; $500 MM, 6.80%, 8/15/39, +237.5bp
$2.0 BLN, GECC, 6.00%, 8/7/19, AA2/AA+, +235bp
$250 MM, Coca-Cola Enterprises, 4.50%, 8/15/19, A3/A, +90bp

ABS:
(priced) $525 MM, FNMNT 09-3, ABS
(launch) $474.68 MM, WFNMT 09-B, ABS
(launch) $1.68 BLN, SLMA 09-D, ABS

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.

CREDIT MARKETS

Treasuries:
Treasury prices dropped Monday, pushing short-term yields to the highest in more than a month, after the Institute for Supply Management’s manufacturing index improved more than expected in July. The ISM index rose to 48.9 last month from 44.6 in June, with readings under 50 still indicating contraction. The trend towards improvement in this sector of the economy pushed equity markets higher, reducing the appeal of the relative safety of government debt. Bond investors are also wary ahead of the U.S. employment report for July, set to be released on Friday. Economists expect a significant drop in the number of jobs lost last month, down from the 467,000 lost in June. The unemployment rate is estimated to have risen to 9.7 percent from 9.5 percent, the survey says. It would be the highest unemployment rate in 26 years. Bond prices remained lower after the Treasury Department said it will sell $406 billion in debt in the current quarter, more than $100 billion less than it estimated three months ago, as banks have paid back bailout funds and Fannie Mae and Freddie Mac required smaller investments. The curve has been steepening on unwinds after last week’s four day trade pushed the 2- to 10- year yield spread to near 235 from 270 plus, now 245. Economic data due offers personal income and spending and pending home sales.

Commentary/New Issues

Corporate:
$750 MM, Niagara Mowhawk Power, 4.881%, 8/15/19, A3/A-, +125bp
$825 MM, North Texas Tollway, 6.718 %, 1/1/49, A2/A-, +230bp
$1.0 BLN, International Paper, 7.50%, 8/15/21, Baa3/BBB, 7.50%, 8/15/21, +387.5bp

ABS:
(guidance) $583.25 MM, CNH Wholesale Master Note Trust, 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.