CREDIT MARKETS

Treasuries:
Treasuries surged after a $12 billion sale of 30-year bonds drew the strongest demand since November 2007, the last of three auctions this week that each attracted more investors than forecast. Thirty-year bonds rallied the most in almost six months as the debt drew a yield of 4.238 percent, the lowest level since March and below the 4.289 percent forecast. Wednesday’s $20 billion 10-year sale also drew a lower-than-forecast yield. The 30-year bond fell 12 basis points to 4.20 percent. The 10-year bonds also fell 11 basis points to 3.36 percent, as the 2-year bonds fell 3 basis points to 0.89 percent. The difference between 2- and 30-year Treasury yields is at 333 basis points, about three times the historical average and up from 191 basis points at the end of 2008. The strong auction results this week helped dampen concern that weakness in the greenback, which today declined to the weakest level against the Euro this year, would drive investors away from dollar-denominated assets.

Commentary/New Issues

Corporate:
$1.5B, Pemex, 4.875%, 3/15/15, BAA1/BBB+, +275bp
$1B, Metlife Global Funding I, 2.875%, 9/17/12, AA2/AA-, +160bp
$2.75B, Commonwealth Bank of Australia, 2-Part: $1.50B, 2.90%, 9/17/14, AAA/AAA, +64.2bp; $1.25B, 3ML +28, 9/17/14, AAA/AAA, +28bp
$1.5B, Prudential Financial, 2-Part: $600M, 3.635%, 9/17/12, BAA2/A, +225bp; $900M, 4.750%, 9/17/15, BAA2/A, +250bp
$1.75B, IADB, 3.875%, 9/17/19, AAA/AAA, +48bp

ABS:
Nothing

Agency:
$3B, FHLB, 1.625%, 9/26/12, AAA, +30bp

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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.