CREDIT MARKETS

Treasuries:
Treasuries declined, pushing the yield on 10-year debt to the highest level since June, after this week’s record-tying $118 billion note auctions drew lower- than-average demand. Seven-year notes fell as the $32 billion sale of the securities attracted the lowest ratio of bids received compared with those accepted in 10 months. Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., said the almost three-decade bond market rally may be ending. The yield on the 10-year note increased 3 basis points to 3.88 percent. It reached 3.92 percent, the highest level since June 11. At yesterday’s seven-year note auction, investors bid for 2.61 times the amount on offer, the lowest since May. Indirect bidders purchased 41.9 percent of the notes, compared with an average of 54 percent over the past 10 sales. Economic Data: GCP, Corporate Profits, Consumer Sentiment

Commentary/New Issues
Corporate:
$250M DUKE REALTY BAA2/BBB- 6.75% 3/15/20 +287.5bp
$1.699B STATE OF CALIFORNIA 4-PT GO BAA1/A- $148M 5.95% 3/1/18 +190bp; $301M 6.20% 3/1/19 +215bp; $250M 6.65% 3/1/22 +255bp; $1B 7.95% 3/1/36
+315bp
$1.701B STATE OF CALIFORNIA 4-PT GO BAA1/A- $50M 3/1/12 NO REOFFERING; $100M 5.50% 3/1/16; $250M 5.75% 3/1/17; $1.25B 7.625% 3/1/40 +270bp

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.