CREDIT MARKETS

Treasuries:
Treasuries fell for a third day, the longest losing streak in almost a month, as initial jobless claims unexpectedly declined and the U.S. said it will sell $74 billion of notes and bonds next week. Ten-year note yields rose to the highest level in almost two weeks as the number of Americans filing first-time claims for unemployment benefits fell last week to the lowest level in more than a year. The Labor Department will say tomorrow that the unemployment rate held at a 26-year high of 10.2 percent in November, a Bloomberg survey shows. The yield on the 10-year note advanced six basis points to 3.37 percent at 4:11 p.m. in New York, the highest level since Nov. 23. Ten-year note yields gained 16 basis points so far in December, the largest increase for the first three trading days of a month since August, when the yield rose 27 basis points to 3.75 percent. The Treasury said it 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. The government raised $81 billion the last time it sold that combination of notes and bonds in November.

Commentary/New Issues

Corporate:
$250M, GENWORTH FIANANCIAL, 8.625%, 12/15/16, BAA3/BBB, +589BP
$800MM, INCITEC PIVOT FINANCE, 6.00%, 12/10/19, BAA3/BBB, +270bp

ABS:
Nothing

Agency:
$3B, FANNIE MAE, 0.875%, 1/12/12, +25bp

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.

Treasuries:
Treasuries fell as Federal Reserve Bank of Richmond President Jeffrey Lacker said the US economy “has hit bottom” and a Fed report said economic conditions improved modestly. Two-year note yields, most sensitive to what the central bank does with interest rates, rose the most in over a month as Lacker said, that policy makers won’t have any problem removing monetary stimulus. The economy lost 123,000 workers in November, the least since March 2008, according to the median forecast. The yield on the two-year note rose four basis points to .71 percent.
Thirty-year bonds declined two basis points to close at 4.25 percent. The Treasury will sell $40 billion of 3-year debt, $21 billion of 10-year securities, and $13 billion of 30-year securities. The US raised $81 billion the last time it sold this combination of securities in November.

Commentary/New Issues

Corporate:
$1.875B, CITIGROUP, 6.01%, 1/15/15, A3/A, +350bp
$1.5B, FINANCE FOR DANISH INDUSTRY, 2-Part: AAA/AAA: $1B, 1.75%, 12/06/12, +67.7bp; $500M, 3ML+23, 12/06/12, 3ML+23bp
$250M, EQUITY ONE 5YR BAS/JPM/WFS BAA3/BBB- (S/S) S/D 12/09 PRICED: 6.25 12/15/14 99.136 6.454 +437.5bp
$750M, CREDIT AGRICOLE, 3ML+18, 6/7/11, AA1/AA-, 3ML+18bp
$600M, CON EDISON, 5.50%, 12/01/39, A3/A-, +128bp
ABS:
Nothing
Agency:
$1BLN, FANNNIE MAE, 2.625%, 11/20/14, 2.250%

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 10-year notes declined for the first time in six days as stocks rose and Dubai World said its debt talks are constructive, reducing demand for the relative safety of government securities. Ten-year yields rose from within four basis points of their lowest level in almost two months as the Institute for Supply Management’s index of new orders improved to 60.3 from 58.5 in November. Treasuries have lost 1.1 percent in 2009, heading for their first losing year in a decade, amid signs the global economy is recovering from the worst slump since WWII. The yield on the 10-year note rose eight basis points to 3.28 percent. Yield on the 2-year notes rose one basis point to .67 percent. The difference between 2- and 10-year note yields touched 2.61 percentage points, the highest level in over a week. The US is scheduled to announce in two days how much it plans to raise in the sale of three-year notes on Dec. 8, 10-year notes on Dec. 9 and 30-year bonds on Dec. 10.

Commentary/New Issues

Corporate:
$500M, NISOURCE FINANCE, 6.125%, 3/1/22, BAA3/BBB-, +290bp
$300M, HEALTHCARE REALTY TRUST, 6.50%, 12/17/17, BAA3/BBB-, +387.5bp
$2B, XEROX, 3-PT: BAA2/BBB: $1B, 4.25%, 2/15/15, +225bp; $650M, 5.625%, 12/15/19, +237.5bp; $350M, 6.75%, 12/15/39, +250bp

ABS:
Nothing

Agency:
$4B, FREDDIE MAC, 1.375%, 1/19/13, +31bp

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.

Shares: 88,401,697

$ Amount: $950,318,243

Shares: 12,657,960

$ Amount: $148,731,030

Shares: 3,199,988

$ Amount: $9,599,964

Shares: 3,220,000

$Amount: $31,395,000

Shares: 5,396,825,397

$ Amount: $17,000,000,000

Coupon: 7.20%

Maturity: 12/22/39

Shares: 60,000,000

Deal size: 1,500,000,000

CREDIT MARKETS

Treasuries:
Treasuries were little changed as the United Arab Emirates’ monetary authority said it will back the state’s lenders as they face losses from Dubai World’s possible default. Ten-year note yields touched the lowest since October 2 last week after Dubai World seeks to delay loan payments. The 10-year notes decreased two basis points to 3.19 percent. Two-year yields closed at .66 percent while they touched 0.61 on November 27. The US will announce on December 3 how much it will sell next week in 3-, 10- and 30-year securities. Also, the Federal Reserve Bank of New York said today it will conduct a series of “small-scale, real-value” tri-party reverse repurchase transactions with primary dealers as a test to ensure the mechanism will be available if needed. Economic news for tomorrow: ISM Manufacturing, Pending Home Sales, Construction Spending and Total Vehicles Sales.

Commentary/New Issues

Corporate:
$750M, INTERNATIONAL PAPER, 7.30%, 11/15/39, BAA3/BBB, +312.5bp

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.