CREDIT MARKETS

Treasuries:
Treasuries rose for a third day as existing home sales unexpectedly fell in August, driving stronger than-forecast demand at a record $29 billion sale of seven-year notes. The notes sold yesterday, in the last of this week’s three auctions totaling $112 billion, drew a yield of 3.005 percent, compared with a forecast of 3.047 percent. The bid-to-cover ratio was 2.79, compared to an average of 2.48 at the past seven auctions. Indirect bidders, a class of investors that includes foreign banks, bought 61.7 percent of the notes, compared to the average of the past seven sales of 46.2 percent. Government securities rose earlier as purchases of existing home sales dropped 2.7 percent in August to 5.1 million annual rate, the second highest level in the last 23 months. Yesterday’s offering of the seven-year notes follows a record $40 billion fiver-year note auction Wednesday, and $43 billion auction of two year on Tuesday. Yesterday as well 10-year dropped 4 basis points to end 3.37 percent.

Commentary/New Issues

Corporate:
$1.1B, Enterprise Products, 2-Part: $500M, 5.25%, 01/21/20, BAA3/BBB-, +195bp; $600MM, 6.125%, 10/15/39, +200bp
$500MM, Kroger Co, 3.90%, 10/01/15, Baa2/BBB-, +158bp
$2B, Wells Fargo, 3.75%, 10/1/14, A1/AA-, +145bp
$1.1B, Viacom inc, 2-Part: $250MM, 4.25%, 9/15/19, Baa3/BBB, +195bp; $300MM, 5.625%, 9/15/19, +200bp

ABS:
Nothing

Agency:
$1B, Freddie Mac, 2.215%, 9/21/12, +21bp

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