CREDIT MARKETS

Treasuries:
Treasuries declined, with 30-year bonds falling the most in two weeks after the government’s $12 billion auction of the debt drew weaker-than-average demand. The bid to cover ratio, was 2.37, compared with 2.92 at the September auction and average of 2.42 at the last 10 auctions. The 30-year bond yield touched 3.89 percent on Oct 2, the lowest level since April. The 30-year bond yield rose eight basis points to 4.08 percent. An investor class that includes foreign central banks bought 34.5 percent of the notes, compared with 46.5 percent at the last auction and an average of 45.36 percent at the past five auctions. The US sold $7 billion in 10-year TIPS on Oct 5, $39 billion in three-year notes the following day and $20 billion in 10-year notes yesterday as President Barak Obama borrows record amounts to spur economic growth.

Commentary/New Issues

Corporate:
$4B, Commonwealth Bank of Australia: 3-Part: $500MM, 2.75%, 10/15/12, AA1/AA, +140bp; $2B, 3.75%, 10/15/14, +160bp; $1.5B, 5.00%, 10/15/19, +182bp

ABS:
Nothing

Agency:
$5B, FNMA, 1.00, 11/23/11, +24bp

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 gained for the first time in four days as the dollar strengthened, bolstering demand at an auction of $20 billion of the securities. The notes drew a yield of 3.21 percent, the bid-to-cover ratio, was 3.01, compared with an average of 2.55 at the last 10 auctions. The 10-year note yield fell eight basis points, or 0.08 percentage point, to 3.18 percent. The yield touched 3.1 percent on Oct. 2, the lowest level since May. On the day the 10-year finished at 3.18 percent. Indirect bidders, an investor class that includes foreign central banks, bought 47.4 percent of the notes at today’s auction. The Fed has purchased 294.064 billion of US debt since March under a $300 billion program scheduled to end this month. The Treasury, which sold a record $39 billion of 3-year debt on Tuesday, will offer $12 billion in 30-year bonds tomorrow.

Commentary/New Issues

Corporate:
$900M , Statoil Hydro, 2.90%, 10/15/14, AA2/AA-, +75bp
$1.5B, Lithuania, 6.75%, 1/15/15, Baa1/BBB, +462.5%

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, led by longer-maturity debt, after the government sold a record $39 billion of three-year notes, the second of four note and bond auctions this week totaling $78 billion. The auction drew a yield of 1.445 percent, more than the 1.441 percent forecast. The bid-to-cover ratio, was 2.76 compared with an average of 2.57 percent at the last 10 auctions. The yield on the benchmark three-year note rose three basis points to 1.38 percent. Yesterday’s sale was the largest three-year note offering since the Treasury began regular auctions of the securities in 1981. Indirect bidders, a class of investors that includes foreign central banks bought 49.1 percent of the notes, compared with the 43.9 percent average at the last 10 auctions. The 10-year note yield rose five basis points to 3.26 percent, while the yield on the 30-year bond climbed six basis points to 4.07 percent. The Government plans to sell $20 billion of 10-year notes tomorrow and $12 billion of 30-year bonds tomorrow.

Commentary/New Issues

Corporate:
$700MM, Protective Life, 2-Part: $400MM, 7.375%, 10/15/19, Baa2/A-, +412.5bp; $300MM, 8.45%, 10/15/39, +437.5bp
$700MM, Boston Properties, 5.875%, 10/15/19, Baa2/A-, 262.5bp
$300MM, RPM Int’l, 6.125%, 10/15/19, Baa3/BBB-, +287.5bp

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.

Shares: 85,250,000

$ Amount: $1,875,500,000

Type: General Obligations and Refunding Bonds Baa1/A+

Amount: $1,313,009,000

CREDIT MARKETS

Treasuries:
Treasuries fell as yields near the lowest levels in more than four months deterred investors from adding to holdings with the government scheduled to sell $78 billion in notes and bonds this week. Ten-year note yields had dropped earlier to the lowest level since May after a government report showed the US economy lost more jobs then forecast in September, reinforcing expectations for a slow recovery. The yield on the benchmark issues has dropped 16 basis points last week. The 10-year note rose three basis points to end on Friday at 3.22 percent. September employment losses bring total jobs lost since the recession began in December 2007 to 7.2 million, the biggest decline since the Great Depression. The report comes as investors are concerned if the economic stimulus led growth will give way natural growth in the economy. The unemployment rate rose to 9.8 percent from 9.7 percent in August. The US will auction this week $39 billion of 3-year notes, $20 billion in 10-year securities, $12 billion in 30-year bonds 10-year Treasury inflation Protected Securities over four consecutive days beginning Oct 5th.

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.

CREDIT MARKETS

Treasuries:
Treasury 30-year bond yields fell below 4 percent for the first time since April as reports showed jobless claims increased, manufacturing declined and inflation remains subdued. Bonds rallied as signs recovery from the worst slump since the Great Depression will be slow prompted traders to reverse bets that yields would increase before tomorrow’s monthly employment report. The yield on the 30-year bond fell eight basis points to 3.96 percent. The yield touched 3.93 percent, the lowest level since April 29. The 10-year note yield touched its lowest level since May 21st, 3.17 percent, ending at 3.19 percent at the close. Yields on Fannie Mae and Freddie Mac mortgage securities tumbled along with those on Treasuries, signaling that interest rates on new-home loans will retreat further and bolster the US housing market. The Labor Department may say that job losses last month totaled 175,000. The Treasury announced plans to sell $78 billion of notes and bonds over four consecutive days next week.

Commentary/New Issues

Corporate:
$400MM, Gaurdian Life, 7.375%, 9/30/39, A1/AA-, +350bp
$1B, Arvelormittal, 7.00%, 10/15/19, Baa3/BBB, +345.2bp
$500MM, Embraer, 6.375%, 1/15/20, Baa3/BBB-, +328bp
$1B, Abu Dhabi Commerical Bank, 4.74%, 10/08/14, AA3/A, +262.5bp

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:
Treasuries headed for their strongest three-month performance since the last quarter of 2008 as signs the recovery may be slow drove speculation the Federal Reserve will keep interest rates near historic lows. Ten-year note yields were within three basis points of the lowest levels since July. The yield on the 10-year note ended up one basis point higher at 3.30 percent. Last year Treasuries rose 14 percent as investors sought refuge from a deepening recession and tumbling prices of securities tried to sub prime mortgages. The 10-year Treasury yield will likely trade in a range between 3 percent and 3.5 percent through the rest of the year. The yield will be driven down to 3 percent by “ongoing stress bank balance sheets, continued rises in loan charge-offs, problems in commercial real estate, well-known and above all continued delivering of consumer balance sheets that are going to keep consumers saving and spending less.

Commentary/New Issues

Corporate:
$250MM, Alliant Energy, 4.00%, 10/15/14, Baa1/BBB, +175bp
$500MM, Tyco Int’l Finance, 4.125%, 10/15/14, Baa1/BBB+, +187.5bp
$1.25B, Republic of Brazil, 5.50%, 1/07/41, Baa3/BBB-, +175.1bp

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.