CREDIT MARKETS

Treasuries:
Treasuries tumbled after the U.S. sold a record-tying $25 billion of 10-year securities, the second of three note and bond auctions this week totaling $81 billion, and as investors weighed the prospects of European aid for Greece. The notes drew a yield of 3.692 percent, compared with the average forecast of 3.680 percent in a Bloomberg News survey of nine of the Federal Reserve’s 18 primary dealers. The bid-to- cover ratio was 2.67, compared with a 10- sale average of 2.76. The yield on the current 10-year note climbed six basis points, or 0.06 percentage point, to 3.71 percent. It increased as much as nine basis points yesterday, the most this year. The 30- year bond yield rose six basis points to 4.65 percent.
Economic news for tomorrow: initial jobless claims and continuing claims.

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 rose, pushing two-year yields to the lowest in eight weeks, as investors sought the safety of U.S. debt on concern deficits threaten Europe and that unexpected job losses signaled a slow American recovery. Yields on U.S. securities fell for a second day as a Labor Department report showed nonfarm payrolls fell by 20,000 and the unemployment rate dropped to 9.7 percent, from 10 percent. Investors bet sovereign risk crises in nations such as Greece, Portugal and Spain may hamper that region’s economic recovery. The yield on the two-year note fell four basis points to 0.76 percent. It touched 0.72 percent, the lowest since Dec. 9, and posted a weekly decrease of five basis points. The yield on the 10-year note dropped five basis points for the day and three basis points for the week to 3.56 percent. It touched 3.53 percent, the lowest since Dec. 21.
Economic news for the upcoming week: Wholesale Inventories, Trade Balance, Retail Sales, Initial Jobless Claims and U of Michigan Confidence.

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 rose, pushing 30-year bond yields down the most in four months, as global stocks fell on concern some European countries face difficulty financing deficits, driving investors to the safety of U.S. debt. Two- and 10-year note yields dropped the most since December as initial claims for U.S. jobless benefits unexpectedly rose and productivity increased less than forecast. Investors shunned the debt of European Union nations with the worst deficits, led by Portuguese bonds. The yield on the 30-year bond decreased 10 basis points, or 0.10 percentage point, to 4.54 percent. It slid earlier as much as 12 basis points, the most since Oct. 1, to 4.52 percent. The 4.375 percent security due in November 2039 climbed 1 1/2, or $15 per $1,000 face amount, to 97 1/4. The two-year note yield fell as much as nine basis points, the most since Dec. 17, to 0.79 percent.
The benchmark 10-year note yield tumbled as much as 12 basis points to 3.58 percent, its biggest decline since Dec. 17. The difference between U.S. 2- and 10-year note yields was 2.80 percentage points after reaching a record 2.90 percentage points Jan. 11. Economic news for tomorrow will focus on the nonfarm payroll and the unemployment rate.

Commentary/New Issues

Corporate:
$9.5B KRAFT FOODS 4-PT BAA2/BBB- $1B 2.625% 5/8/13 +140bp; $1.75B 4.125% 2/9/16 +190bp; $3.75B 5.375% 2/10/20 +190bp; $3B 6.50% 2/9/40 +205bp
$8B BERKSHIRE HATHAWAY 6-PT AA2/AA+ $2B 2/10/11 3ML-2bp; $1.1B 2/10/12 3ML+18bp; $600M 1.40% 2/10/12 +63bp; $1.2B 2/10/13 3ML+43bp; $1.4B
2.125% 2/11/13 99.965bp; $1.7B 3.20% 2/11/15 +93bp
$450M PACIFIC LIFE CORP BAA1/A- 6.00% 2/10/20 +250bp

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 on speculation a private-sector report showing U.S. companies eliminated fewer-than-forecast jobs last month foreshadowed the biggest increase in U.S. employment in two years. The 10-year note yield rose to a two-week high. The Treasury announced it will sell a record-tying $81 billion in notes and bonds next week and said there’s no need for more increases in auction sizes. The 10-year note yield climbed five basis points, or 0.05 percentage point, to 3.70 percent. It touched 3.71 percent, the highest level since Jan. 19. The 3.375 percent security maturing in November 2019 dropped 14/32, or $4.38 per $1,000 face amount, to 97 3/8. Thursday’s economic news will focus on initial jobless claims and factory orders.

Commentary/New Issues

Corporate:
$1.25B VALERO ENERGY 2-PT A1/A- $225M 5.209% 2/11/30 +150bp; $275M 6.09% 2/11/40 +145bp
$500M FLORIDA POWER & LIGHT AA2/A 5.69% 3/1/40 +20bp
$750M KDB A2/A 4.375% 8/10/15 +203bp
$2B PNC FUNDING 2-PT A3/A $1B 3.625% 2/8/15 +125bp; $1B 5.125% 2/8/20 +145bp

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 10-year note yields traded near the middle of a range they’ve been in since May before a report this week forecast to show the U.S. added the most jobs last month in two years, signaling the economy is strengthening. Yields on the benchmark note were steady before the U.S. announces tomorrow how much in 3-, 10- and 30-year securities it will auction next week. Former Federal Reserve Chairman Paul Volcker urged a Senate committee to strengthen regulation of financial firms whose failure could pose a threat to the economy. The yield on the 10-year note fell two basis points, or 0.02 percentage point, to 3.64 percent. The 3.375 percent security due in November 2019 rose 5/32, or $1.56 per $1,000 face amount, to 97 7/8. It has traded between 3.07 percent and 4.0 percent since May 1.

Commentary/New Issues

Corporate:
$3.5B WILLIAMS PARTNERS 3-PT BAA3/BBB $750M 3.80% 2/15/15 +145bp; $1.5B 5.25% 3/15/20 +162.5bp; $1.25B 6.30% 4/15/20 +180bp
$500M COCA COLA FEMSA A3/A- 4.625% 2/15/20 +105bp
$250M GATX BAA1/BBB+ 4.75% 5/15/15 +255bp
$1B AFRICAN DEVELOPMENT BANK AAA/AAA 1.625% 2/11/13 +36.3bp

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 for the first time in three days after a report showed manufacturing expanded last month at the fastest pace in more than five years and the Obama administration projected a record $1.6 trillion budget deficit. Yields on 30-year bonds increased by the most in more than two weeks as the gain in the Institute for Supply Management’s factory index and a separate report showing U.S. personal spending rose for a third straight month renewed concern inflation may accelerate. The yield on the 10-year note rose 7 basis points to 3.66 percent at 1:51 p.m. in New York. The 3.375 percent security due in November 2019 fell 18/32, or $5.63 per $1,000 face amount, to 97 21/32. Thirty-year bond yields rose as much as 9 basis points to 4.58 percent, the biggest one-day increase since Jan. 13. The U.S. will announce how much in 3-, 10- and 30-year securities it will sell this quarter on Feb.3.

Commentary/New Issues

Corporate:
$1.25B PROCTER & GAMBLE AA3/AA- 1.375% 8/1/12 +55bp

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 posted their first weekly loss this year after the Federal Reserve upgraded its growth outlook and the economy expanded at the fastest pace in six years during the closing months of 2009. Yields on government debt due in two-years rose by the most since the final week of December as investors anticipated the central bank may remove stimulus measures sooner than expected. Treasuries gained on Friday as stocks erased earlier increases. The yield on the 2-year note rose 3 basis points on Friday to 0.82 percent at 4:26 p.m. in New York. The yield fell 4 basis points on Friday and was down 32 basis points in January. The 10-year note yield dropped 2 basis points on the week to 3.59 percent, after dropping 4 basis points on Friday. For January, the yield dropped 24 basis points, the biggest monthly decline since March.

Commentary/New Issues

Corporate:
$3BN PROVINCE OF ONTARIO AA1/AA- 2.95% 2/5/15 +57.2bp

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.