CREDIT MARKETS

Treasuries:
Treasury notes dropped for the first time in five days as the Institute for Supply Management reported that service industries expanded in February more than economists forecast. The yield on the three-year security increased from the lowest level in three weeks before the government announces today the size of next week’s estimated $74 billion note and bond auctions. U.S. debt pared losses as the Federal Reserve said in its regional assessment that real estate and loan demand were weak and the pace of hiring was soft. The yield on the benchmark 10-year note increased 1 basis point to 3.62 percent. The three-year note’s yield rose 1 basis point to 1.32 percent from 1.31 percent, the lowest since Feb. 9. The five- year yield was little changed at 2.27 percent after earlier increasing 4 basis points. Consumer spending increased in many regions, the Fed said in its Beige Book business survey, published two weeks before the Federal Open Market Committee meets to set monetary policy. Economic news for tomorrow will focus on chain store sales, weekly jobless claims, pending home sales and factory orders.

Commentary/New Issues
Corporate:
$95M WESTERN MASS ELECTRIC Baa2/BBB 5.10% 3/1/20 +150bp
$325M PUGET SOUND ENERGY Baa1/A- 5.795% 3/15/40 +120bp
$350M SOUTHWESTRN ELECTRIC PWR Baa3/BBB 6.20% 3/15/20 +160bp
$500M JOHN DEERE CAPITAL A2/A 2.95% 3/9/15 +68bp
$2B TIME WARNER 2-PT Baa2/BBB $1.4B 4.875% 3/15/20 +130bp; $600M 6.20% 3/15/40 +162bp

ABS:
Nothing

Agency:
$5.5BLN FREDDIE MAC 1.625% 4/15/13 +31.5bp

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.