CREDIT MARKETS

Treasuries:
Treasuries were little changed as the U.S. announced plans to sell a record-tying $118 billion in 2-, 5- and 7-year notes next week. Government securities increased earlier after reports showed spending by U.S. consumers rose less than forecast and purchases of new homes unexpectedly fell to a seven-month low in November. Ten-year notes capped their steepest back-to-back decline since July yesterday amid speculation a recovery in the world’s largest economy will fuel inflation, reducing the value of bonds’ fixed payments. The benchmark 10-year note yield traded at 3.75 percent at end of day Wednesday. The U.S. will sell $44 billion in two-year notes on Dec.28, $42 billion in five-year debt the next day and $32 billion in seven-year securities the day after that.

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:
Treasuries fell, pushing the 10-year note’s yield to the highest level in four months, as stocks rose and a report showed sales of existing U.S. homes increased more than forecast in November. The 10-year note’s yield touched the highest level since August before the Treasury announces today it will sell $44 billion in two-year notes on Dec. 28, $42 billion in five-year debt on Dec. 29 and $32 billion in seven-year securities on Dec. 30. The difference in yields between 2-and 10-year notes widened to a record for a second day as investors bet the recovery will fuel inflation and reduce demand at record U.S. debt sales. A $44 billion two-year auction would match November and October’s record offerings. A $42 billion five-year sale and a $32 billion seven-year offering would equal the records set last month.

Commentary/New Issues

Corporate:
$4B, JPMorgan Chase, Floating/Extendable, 1/12/2011, Libor Flat

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 as an increase in crude oil prices fueled speculation inflation will accelerate in coming months, denting demand for fixed-rate assets. Ten-year note yields declined the most since October yesterday after a report showed more Americans than anticipated filed first-time claims for jobless benefits. Oil prices rose in New York after reports that Iranian forces entered Iraqi territory and surrounded an oil well. The yield spread between 10-year notes and TIPS, a gauge for price-growth expectations, was at 228 basis points, near the most in 16 months. The yield on the 10-year note rose seven basis points to 3.54 percent. The yield fell one basis point for the week.

Upcoming economic data
Tuesday: GDP, personal consumption, consumer confidence, existing home sales.
Wednesday: mortgage applications, personal income, personal spending, PCE deflator, new home sales.
Thursday: durable goods, initial jobless claims.
Friday: Christmas day, the markets will be closed.

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:
Treasuries fell, with the 10-year note yield touching the highest level since August, as wholesale prices in the U.S. increased last month more than forecast amid speculation the Federal Reserve will keep rates at record lows. Two-year notes fell for a fifth day, the longest series of declines since May, as a separate report showed industrial production increased in November by the most in three months. The Federal Open Market Committee will announce its decision on interest rates at around 2:15 p.m. tomorrow in Washington. The yield on the two-year note rose two basis points to 0.88 percent. It gained 14 basis points over the past five trading days. The difference between 2- and 10-year yields rose three basis points to 2.70 percent. The 1.8 percent rise in prices paid to factories, farmers and other producers was more than twice as large as anticipated and followed a 0.3 percent gain in October, according to Labor Department data.

Commentary/New Issues

Corporate:
$1.25B, ANZ NATIONAL INT’L, 2.375%, 12/21/12, AA2/AA, +105bp
$500M, REPUBLIC OF BRAZIL, 5.875%, 1/15/19, BAA3/BBB-,+113.9bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
U.S. two-year notes fell for a fourth day, the longest stretch since the four trading days ended Oct. 19, as demand for the safety of U.S. debt waned after Abu Dhabi agreed to bail out Dubai World with $10 billion. Futures traders are also reducing bets for gains in two-year Treasuries as Federal Reserve officials meet this week amid signs the economic recovery is lifting the labor market from its worst slump since before World War II. The yield spread between 2- and 10-year notes fell four basis points to 270 basis points, down from 275 basis points at the end of last week, the highest since June 4. The 2-year and 5-year securities declined four basis points to .85 and 2.29 percent respectively.

Commentary/New Issues

Corporate:
$400M, AFLAC, 6.90%, 12/17/39, A2/A-, +250bp
$850M, DR PEPPER SNAPPLE, 2-PT: BAA3/BBB-: $400M, 1.70%, 12/21/11, +90bp; $450M, 2.35%, 12/21/12, +103bp
$1B, BNP PARIBAS, 2.125%, 12/21/12, AA1/AA, +80bp

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, with the gap in yields between 2- and 30-year securities reaching the widest margin since at least 1980, after a $13 billion offering of 30- year bonds drew lower-than-forecast demand. The $21 billion offering drew a yield of 3.448 percent, compared with an average forecast of 3.421 percent in a Bloomberg survey. The bid-to-cover ratio, which gauges demand, was 2.62, less than an average of 2.63 at the past 10 auctions.
Indirect bidders, which include foreign central banks, purchased 34.9 percent of the 10-year debt on offer, compared with an average of 45.6 percent since the Treasury made change in June on how bids are classified. Yield curve touched 374 basis points, the most in at least 29 years, as the bonds drew a yield of 4.52 percent, compared with an average forecast of 4.483. The so-called yield curve has widened from 191 basis points at the end of 2008, with the Fed anchoring its target rate at a record-low range of zero to 0.25 percent and the Treasury extending the average maturity of U.S. debt. The yield on the current 30-year bond rose ten basis points to 4.50 percent. Two-year note yields increased two basis point to 0.76 percent.

Commentary/New Issues

Corporate:
$2B, BOSTON SCIENTIFIC, 3-PT: BA1/BBB-: $850M, 4.50%, 1/15/15, +237.5bp; $850M, 6.00%, 1/15/20, +262.5bp; $300M, 7.375%, 1/15/40, 287.5bp
$400M, CATERPILLAR FINANCE, 2-PT: A2/A/A: $150M, 3ML+25, 12/16/11, 3ML+25; $250M, 1.90%, +73bp
$400M, AMERICAN TRANSMISSION SYSTEMS, 5.25%, 1/15/22, BAA1/BBB, +180bp

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 declined for the first time in three days after an investor group that includes foreign central banks bought the least amount of 10-year notes since June at yesterday’s $21 billion auction of the securities. Yields on debt maturing in 10 years increased as indirect bidders won 34.9 percent of the debt, compared with an average of 45.6 percent since the Treasury made changes in June on how bids are classified. The so-called reopening of the notes originally sold in November was the second of three note and bond sales this week totaling $74 billion. The yield on the 10-year note rose three basis points to 3.42 percent. The 3.375 percent security maturing in November 2019 fell 10/32, or $3.13 per $1,000 face amount, to 99 18/32. The notes drew a yield of 3.448 percent, compared with the average forecast of 3.421 percent in a survey of seven primary dealers. The bid-to-cover ratio was 2.62, compared with an average of 2.63 at the past 10 auctions.

Commentary/New Issues

Corporate:
$350M, NY LIFE GLOBAL, 3ML+12.5, 6/16/11, AAA/AAA, 3ML+12.5bp
$250M, SIGMA ALIMENTOS, 6.875%, 12/16/19, NR/BBB-, +374bp
$250M, PACCAR FINANCIAL, 1.95%, 12/17/12, A1/AA-, +82bp
$750M, HESS CORPORATION, 6.00%, 1/15/40, BAA2/BBB-, +165bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasuries rose, with today’s record-tying $40 billion three-year note auction drawing the lowest yield since January, after a reduction in Greece’s credit rating spurred demand for the relative safety of U.S. government debt. The securities yielded 1.223 percent, compared with a forecast of 1.229 percent in a Bloomberg News survey of six of the Federal Reserve’s primary dealers. Two-year note yields dropped below levels seen on Dec. 3, a day before they surged the most since August after a report showed that the U.S. economy lost fewer jobs than forecast in November.
Chairman Ben S. Bernanke said yesterday the U.S. economy faces ”significant headwinds.” The yield on the current three-year dropped five basis points points to 1.18 percent. Ten-year note yields declined three basis points to 3.39 percent. Two-year note yields fell four basis points to 0.72 percent after touching 0.69 percent, the lowest level since Dec. 2. The bid-to-cover ratio was 2.98 at today’s sale, compared with an average of 2.75 for the past 10 sales. Indirect bidders purchased 60.9 percent of the notes, versus an average of 49.3 percent for the past 10 sales.

Commentary/New Issues

Corporate:
$2B, Time Warner Cable, Baa2/BBB, 2 part; $500 MM, 3.50%, 2/01/15, +153bp; $1.5B, 5.00%, 2/01/20, +188bp
$500 MM, Georgia Power, 4.125%, 12/01/19, A2/A,+90bp
$300 MM, Goodrich Corp, 4.875%, 3/01/20, Baa2/BBB+, +153bp
$250 MM, Wisconsin Electric Power, 4.25%, 12/15/19, A1/A-, +90bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasuries advanced, with two-year notes gaining the most in more than a week, As General Reserve Chairman Bernanke said the US economy faces significant headwinds and inflation could move lower. Yields on U.S. government securities fell as Bernanke said “credit remains tight” and the job market “remains weak.” The difference between 2- and 10-year yields reached the most since July before the U.S. sells $74 billion in notes and bonds in three auctions beginning tomorrow. The benchmark two-year note yield fell eight basis points to 0.76 percent at 2:31 p.m. in New York. The Treasury will auction $40 billion of 3-year notes tomorrow, $21 billion of 10-year securities on Dec. 9 and $13 billion of 30-year bonds on Dec. 10.

Commentary/New Issues

Corporate:
$500M, USB CAPITAL XIII, 6.625%, 12/15/39, A2/BBB+, +225bp
$3B, WESTPAC BANKING, $1.5B, 1.90%, 12/14/12, AAA/AAA, +68.7bp; $1.5B, 3ML+19, 12/14/12
$744.4M, CVS PASS THRU TRUST, 7.507%, 1/10/32, BAA2/BBB+, +417.5bp

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:
Treasury two-year notes fell the most since August after the U.S. economy lost fewer jobs than forecast last month, signaling the labor market is emerging from the worst slump in the post-World War II era. Two-year note yields surged as much as 14 basis points to 0.86 percent as the Labor Department said employers cut 11,000 jobs last month, less than the most optimistic forecast among economists surveyed by Bloomberg News. The unemployment rate fell to 10 percent from a 26-year high of 10.2 percent in October. The Treasury will auction $40 billion of 3-year notes on Dec. 8, $21 billion of 10-year notes on Dec. 9 and $13 billion of 30-year bonds on Dec. 10. The U.S. will also sell $30 billion in three-month bills and $31 billion in six-month bills. U.S. government bonds lost 1.8 percent this year after returning 14 percent in 2008, the most this decade.
Economic News: Trade Balances, Monthly Budget Statement and MBA Mortgage Applications.

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.