CREDIT MARKETS

Treasuries:
Treasury three-month bill rates turned negative for the first time since financial markets froze last year on concern that the rally in higher-yielding assets has outpaced the prospects for economic growth. Investors were willing to pay the government to hold their money as stocks slid amid speculation the eight-month, 68-percent rally that drove the valuation of the MSCI World Index to the most expensive level in seven years already reflects forecasts for a 25-percent rebound in corporate earnings next year. Federal Reserve Bank of St. Louis President James Bullard yesterday said experience indicates policy makers may not start to increase interest rates until early 2012. The two-year note yield fell five basis points to 0.70 percent at 4:24 p.m. in New York, according to BGCantor Market Data. The 1 percent security due October 2011 rose 3/32, or 94 cents per $1,000 face amount, to 100 18/32. The yield touched 0.6759, the lowest since Dec. 19. It fell to an all-time low of 0.6044 percent on Dec. 17.

Commentary/New Issues

Corporate:
$500M, HARLEY DAVIDSON, 5.75%, 12/15/14, BAA1/BBB, +362.5bp
$312M, CAYMAN ISLANDS, 5.95%, 11/24/19, AA3/NR, +261.6bp
$250M, OAKTREE CAPITAL MGMT LP, 6.75%, 12/02/19, NR/A-, +360bp

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.