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.