CREDIT MARKETS

Treasuries:
Treasury 30-year bonds rose for a fourth day after a report showed producer prices increased less than forecast in October, confirming the Federal Reserve’s outlook for subdued inflation. Longer-term government debt extended gains posted yesterday after Fed Chairman Ben S. Bernanke indicated in a speech that low inflation will allow policy makers to keep interest rates near zero for an extended period. Foreign purchases of U.S. debt totaled $44.7 billion in September compared with purchases of $28 billion a month earlier. The 30-year bond yield fell two basis points to 4.26 percent. China remained the biggest foreign holder of U.S. Treasuries, after its holdings rose $1.8 billion to $798.9 billion, according to data from the Treasury Department’s Treasury International Capital report. Japan, the second-largest holder, increased its holdings $20.3 billion to $751.5 billion.

Commentary/New Issues

Corporate:
$500M, AMB PROPERTY, 2-PT: BAA1/BBB, $250M, 6.125%, 12/1/16, +337.5bp; $250M, 6.625%, 12/1/19, +337.5bp
$500M, VODAFONE, BAA1/A-, 3.375%, 11/24/15, +135bp
$300M, PEFCO, AAA/AA+, 4.30%, 12/15/21, 4.373%, +105bp
$500M, US BANCORP, AA3/A+, 2.875%, 11/20/14, +80bp
$1.2B, BOEING, 2-PT, A2/A/A+, $700M 1.875%, 11/20/12, +80bp; $500M, 3.75%, 11/20/16, +115bp
$2B, MORGAN STANLEY, A2/A/A, 4.20%, 11/20/14, +205bp

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.