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.