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.