CREDIT MARKETS

Treasuries:
Treasuries fell after comments from Federal Reserve Bank of St. Louis President James Bullard that rates may not rise until early 2012 prompted traders to increase bets inflation will accelerate. The difference between 2- and 10-year note yields widened for the first time in five days as Bullard, in a speech in St. Louis, said that based on the past two recessions, the Fed’s “tightening campaign” may begin in the first half of 2012. A report showed the cost of living rose more than forecast in October and the U.S. prepares to announce today the amount of 2-, 5- and 7-year notes it will auction next week. The 10-year note yield rose four basis points to 3.37 percent. Two-year note yields, most sensitive to monetary policy, fell two basis points to 0.75 percent after earlier touching 0.7328 percent, the lowest level since Jan. 23. The yield curve widened six basis points to 2.62 percentage points.

Commentary/New Issues

Corporate:
$250M, PUBLIC SERVICE ELECTRIC & GAS, A2/A-, 5.375%, 11/01/39, +112bp
$600M, REPUBLIC SERVICES, BAA3/BBB, 5.25%, 11/15/21, +190bp
$400M, FORTUNE BRANDS, BAA3/BBB, 3.00%, 6/1/12, +230bp
$350M, TRANSATLANTIC HOLDINGS, BAA1/BBB+, 8.00%, 11/30/39, +394.1bp

ABS:
Nothing

Agency:
$1BLN, FANNIE MAE, 1.00%, 11/23/11

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.