CREDIT MARKETS

Treasuries:
Treasuries gained as the Federal Reserve said interest rates would remain near zero for an extended period and a record $42 billion sale of five-year debt drew the strongest demand in over two years. The bid-to-cover ratio at yesterday’s sale was 2.81, the highest since September 2007. The yield on the current five-year note declined four basis points, or 0.04percentage points, to 2.09 percent. The 10-year note yields dropped five basis points to 3.31 percent. The Fed minutes showed that while policy makers agreed that the chances of excessive risk-taking and a dislodging of expectations for low inflation were relatively low, they would remain alert to these risks. Treasuries of all maturities have gained 1.15 percent since the Fed’s Nov. 4 meeting, compared with a 1.17 percent return for high-yield debt and a 1.58 percent rise in investment-grade corporate bonds. Today the Treasury plans to sell $32 billion of 7-year debt, for a record $118 billion sales this week.

Commentary/New Issues

Corporate:
$3B, NIBC BANK, 2-Part: AAA/AAA: $1B, 3ML+38, 12/02/14, 3ML+38bp; $2B, 2.80%, 12/02/14, +69bp
$300M, FMC CORP, 5.20%, 12/15/19, BAA2/BBB+, +190bp

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.