CREDIT MARKETS

Treasuries:
Treasuries gained as concern that Greece’s credit ratings may be cut boosted a gauge of demand to a record at a $32 billion auction of seven-year securities. The number of bids was almost triple the amount of securities offered, for a bid-to-cover ratio of 2.98, the highest since the note was reintroduced in February 2009 after a 16-year hiatus. The notes drew a yield of 3.078 percent, compared with a forecast of 3.103 percent in a Bloomberg News survey of five of the Federal Reserve’s 18 primary dealers. The current seven-year note yield dropped seven basis points. The benchmark 10-year note’s rate fell five basis points to 3.63 percent after earlier touching 3.62 percent, the lowest level since Feb. 10. Government reports yesterday unexpectedly showed the number of Americans filing first-time jobless claims rose and orders for durable goods excluding transportation items fell. Fed Chairman Ben S. Bernanke said the economy is “still very weak.” Economic news for tomorrow will focus on: 2nd read on Q4 GDP, consumer sentiment and existing home sales.

Commentary/New Issues

Corporate
$1B RENTENBANK Aaa/AAA 2.25% 3/1/14 +95.3bp
$1.25B VTB BANK Baa1/BBB 6.465% 3/4/15 +412.3bp
$500M ENBRIDGE ENERGY Baa2/BBB 5.20% 3/15/20 +155bp

ABS:
Nothing

Agency:
$1B FANNIE MAE 2.625% 11/20/14

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 MarketsNew Issues larger than $250mm.