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.