CREDIT MARKETS

Treasuries:
Treasuries rallied as a record $44 billion sale of two-year notes drew the strongest demand since the financial crisis began and a report showed confidence among U.S. consumers unexpectedly fell this month. Two-year note yields declined as much as 10 basis points, the most on an intraday basis since June 9. The auction drew a bid-to-cover ratio of 3.63, the most since August 2007 and the second highest since at least 1992. Indirect bidders purchased 44.5 percent of the securities, versus an average of 42.6 percent for the past 10 sales. The current two-year note yield fell nine basis points to 0.93 percent. The 1 percent security maturing in September 2011 rose 5/32, or $1.56 per $1,000 face amount, to 100 4/32. The notes sold today drew a yield of 1.02 percent, compared with an average forecast of 1.051 percent. The results signal the unprecedented amount of debt being sold to finance the record budget deficit is not damping investor demand.

Commentary/New Issues

Corporate:
$3B, JAPAN FINANCE CORP, 2.125%, 11/05/12, AA2/AA, +58.8bp
$600M, PROLOGIS, 7.375%, 10/30/19, BAA2/BBB-, +395bp

ABS:
Nothing

Agency:
$1.5B, FFCB, 1.875%, 12/7/12, +34bp

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.

CREDIT MARKETS

Treasuries:
Treasuries fell, with 10-year note yields touching their highest level in two months, as the U.S. began to sell a record $123 billion of notes to fund its stimulus program and record deficits. Government securities declined for a fourth day as the Treasury sold of $7 billion of five-year TIPS at a yield of 0.769 percent. The offering, which drew higher-than-average demand, will be followed by three auctions of fixed-rate notes this week. The yield on the 10-year note increased seven basis points to 3.55 percent. The yield touched 3.58 percent, the highest level since Aug. 24.

“The momentum suggests we could move higher in yields,” said David Ader, head of U.S. government bond strategy in Stamford, Connecticut, at CRT Capital Group LLC. “If we break 3.52 percent, then the next projection is 3.76 percent. Resistance is at 3.28 percent.”

The 10-year yield will increase to 3.56 percent by year- end, according to the average forecast of analysts in a Bloomberg survey, with the most recent estimates given the heaviest weightings. The U.S. is scheduled to sell $44 billion of two-year notes today, $41 billion of five-year notes tomorrow and $31 billion of seven-year securities on Thursday.

Commentary/New Issues

Corporate:
$400MM, OGLETHORPE POWER, 5.95%, 11/01/39, A3/A/A, +160bp

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

CREDIT MARKETS

Treasuries:
Treasury two-year note yields rose above 1 percent for the first time this month amid speculation the Fed may begin to signal a rise in interest rates and as the US prepared a record $123 billion of note sales. The yield on the two-year security, most sensitive to monetary policy, gained the most in two weeks after Fed Philadelphia President Charles Plosser, said, “His instinct is the time for raising rates will be before many of my colleagues think it is.” Plosser’s statement struck a more hawkish tone and the market has to get ready for this week’s Treasury auctions, so the combination is putting pressure on yields. The yield on the 2-year and 10-year note rose 8 basis points to 1.01 and 3.49 percent respectively. The US will sell $7 billion in five-year TIPS on Oct 26th, $44 billion of two-year notes on Oct. 27, $41 billion of five-year debt on Oct. 28, and $31 billion of seven-year securities on Oct. 29. Economic news for next week: Consumer Confidence, Durable Goods Orders, and New Home Sales.

Commentary/New Issues
Corporate:
$4B, PETROBRAS, BAA1/BBB, 2-PT: $2.5BLN, 5.750%, 1/20/20, +238.5bp; $1.5BLN, 6.875%, 1/20/40, +270.6bp

ABS:
Nothing

Agency:
$3.5B, FANNIE MAE, 5YR, 2.625%, 11/20/14, +33bp

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.

CREDIT MARKETS

Treasuries:
Treasuries fell for a second day as US announced plans to sell a record $123 billion of notes and inflation-protected debt next week and an industry report showed an index of US leading indicators advanced more than forecast. The yield spread between the two- and the 10-year notes widened to 247 basis points with the majority of the securities being sold maturing in five years and more. Both yields on the 10-year and 30-year notes rose 3 basis points to 3.41 and 4.23 percent. Two year note yields were little changed at .94 percent. Officially the treasury will sell $7 billion in five-year TIPS on Oct. 26, $44 billion of two-year notes on Oct. 27, $41 billion of five-year notes, $39 billion in 5-year securities, and $28 billion in notes maturing in seven years.

Commentary/New Issues

Corporate:
$1B, BOEING CAPITAL, 2-PT: $500M, 3.25%, 10/27/14, A2/A, +95bp; $500M, 4.70%, 10/27/19, +130bp
$850M, NOBLE GROUP, 6.75%, 1/29/20, BAA3/BBB-, +344.5bp

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

CREDIT MARKETS

Treasuries:
Treasury 10-year notes rose the most in a week as housing starts increased less than forecast and wholesale prices fell, signaling the Federal Reserve has leeway to keep rates near historic lows. 30-year bonds, most sensitive to inflation expectations, increased as producer prices unexpectedly fell 0.6 percent in September. The yield on the 10-year note fell four basis points to 3.33 percent. The difference between 2- and 10-year notes touched 2.39 percentage points, the lowest level in almost two weeks, as housing starts rose to an annual rate of 590,000, below the 610,000 rate forecast by Bloomberg. Treasury 10-year yields could reach 4.5 percent as rising debt sales and the end of the Federal Reserve’s purchase program spark “supply-demand imbalance.” The Fed has purchased $297.014 billion in US debt, or 25.4 percent of new cash raised by the Treasury.

Commentary/New Issues

Corporate:
$1B, JPM CHASE CAPITAL TRUST XXVII, 7.00%, 11/01/39, A1/BBB+, +287.5bp
$500M, MECCANICA HOLDINGS, 6.25%, 1/15/40, A3/BBB, +210bp
$2.5B, CITIGROUP, 1.875%, 10/22/12, AAA/AAA, +30.8bp
$2.5B, CITIGROUP, 1.75%, 12/28/12, AAA/AAA, +42bp

ABS:
Nothing

Agency:
$3.5B, FREDDIE MAC, 1.125%, 12/15/11, +26bp

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.

CREDIT MARKETS

Treasuries:
Treasury 10-year notes rose after the Federal Reserve said it’s working with counterparties to test a system to withdraw the unprecedented amount of cash injected into the financial system the last two years. The yield on the 10-year note fell 3 basis points, to 3.37 percent. The two and five-year notes stayed relatively flat, with the 5-year note dropping 1 basis point at the close on Monday to 2.33 percent. Investors can’t get enough Treasuries even as the US budget deficit climbs beyond $1 trillion, the government sells a record amount of debt and the dollar declines to the weakest level since August 2008. Bond investors see no reason to abandon Treasuries with the Federal Reserve likely to keep interest rates on hold until at least the second half of 2010.

Commentary/New Issues

Corporate:
$1.5B, TEMASEK FINANCIAL LTD, 4.30%, 10/28/19, AAA/AAA, +95bp

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 offerings 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 30-year bonds gained for the first time in three days as investors sought higher returns amid signs the economy is recovering without an acceleration in inflation. The difference in yields between two- and 10-year notes narrowed by 0.06 percentage point to 2.45 percentage points, the first flattening of the yield in four days. A treasury report showed today that international investors accumulated Treasuries in August for third straight month. Ten-year note yields fell 6 basis points to 3.40 percent. Yields on two-year note rose for a third day, climbing 1 basis point to 0.95 percent, after a report showed industrial production rose more than three times as much as anticipated in September, adding to signs of the emerging economic recovery. Thirty-year bonds declined last week by the most in four months after an auction of $12 billion of the securities was met with less than average demand. Economic news for this week: Existing Home Sales and Leading Indicators.

Commentary/New Issues
Corporate:
$689.74MM, NYC TRANSITIONAL FINANCE AUTHORITY, 7-PT: (8S,9S,10S,11S,12S,25S & 30S) AA2/AAA: $17.04M, 4.366%, 8/1/17, 4.366bp; $17.74M, 4.466%,
8/1/18, 4.466bp, $18.49M, 4.566%, 8/1/19, 4.566bp; $19.29M, 4.666%, 8/1/20, 4.666bp; $20.135M, 4.766%, 8/1/21, 4.766bp; $472.045M, 5.767%, 8/1/36, 5.767bp;
$125M, 6.267%, 8/1/39, 6.267bp
$1B, REP OF PHILIPPINES, 6.375%, 10/23/34, BA3/BB-, +216.5bp

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

CREDIT MARKETS

Treasuries:
Treasuries fell, with 10-year note yields reaching their highest level in three weeks, as Federal Reserve reports showed a gradual increase in manufacturing in the Northeast and little inflation. The yield on the 10-year note rose four basis points, or 0.04 percentage point, to 3.44 percent.
The 10-year yield has gained as much as 36 basis points after touching 3.10 percent on Oct 2, the lowest level since May, as Bernanke said the Fed is ready to raise interest rates from historic lows. The difference between the 2- and 10- year notes, touched 2.53 percentage points yesterday, the most since Sept 9. TIPS indicate Bernanke has yet to quell speculation that inflation will pick up as the central bank and the government lent, spent or guaranteed $11.6 trillion to support the economy raising concern it will lead to a higher cost of living.

Commentary/New Issues

Corporate:
$503.365MM, STATE OF WASHINGTON, 7-PT “BABS”: $179.7M, 4.536% 8/1/20, AA1/AA+/AA, 4.536bp; $185.05M, 4.586%, 8/1/21, 4.586bp; $190.7M, 4.636%,
8/1/22, 4.636bp; $196.55M, 4.686%, 8/1/23, 4.686bp; $202.65M, 4.736%, 8/1/24, 4.736bp; $112.51M 5.381 8/1/29, 5.381bp; $295.39M, 5.481, 8/1/39, 5.481bp
$4B, US CENTRAL FEDERAL CREDIT, 3-PT: $500M, 3ML+0, 10/19/11, AAA/AAA, 3ML+0; $1.5B, 1.25%, 10/19/11, +36.5bp; $2B, 1.90%, 10/19/12, +47bp

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

CREDIT MARKETS

Treasuries:
Treasuries were little changed before JP Morgan Chase reports earnings that may add to evidence the financial industry is recovering and a government report predicted to show retail sales fell. The yield on the 10-year note stayed within 2 basis points of the highest level in almost three weeks. The 10-year note yield climbed to 3.37 percent at the close of trading. According to survey’s the ten-year note will rise to 4 percent by year-end. The 30-year note was relatively unchanged rising to 4.21 percent. The US economy grew 2.3 percent in the third quarter, snapping a yearlong contraction. A report from the US Commerce Department is forecast to show that retail sales in the US dropped 2.1 percent last month, the most this year, after rising 2.7 percent in August.

Commentary/New Issues

Corporate:
$1.25B, Deere & Co, 2-Part: $750MM, 4.375%, 10/16/19, A2/A, +110bp; $500MM, 5.375%, 10/16/29, A2/A, +115bp
$5.5B, Anheuser Busch, 4-Part: $1.5B, 3.00%, 10/15/12, BAA2/BBB+, +160bp; $1.25B, 4.125%, 1/15/15, +185bp; $2.25B, 5.375%, 1/15/20, +210bp; $500M, 6.375%,
1/15/40, +220bp
$500MM, NY Life Global Funding, 2.25%, 12/14/12, AAA/AAA, +93bp

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

CREDIT MARKETS

Treasuries:
Treasuries fell, with two-year notes recording their first weekly loss since September, as Federal Reserve Chairman Bernanke said the bank is ready to tighten monetary policy once the economic outlook improves. Thirty-year bonds declined the most in four months after yesterday’s $12 billion auction of 30-year bonds, the last four offerings this week totaling $78 billion, drew weaker than average demand. The yield on the 30-year bond closed below 4 percent last week for the first time since April as reports showed manufacturing declined and inflation remains subdued. Since then the yield on the 30-year, rose to 4.22 percent on Friday’s close, the most since Aug 7th. The yield on the two-year note rose nine basis points, or 0.09 to .96 percent. The 10-year yield could fall as low as 3.1 percent as stalling economic improvements have outweighed auction supply.

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