Treasuries:
Treasury prices turned up Wednesday, pushing yields back towards multi-month lows, after minutes from the Federal Reserve’s latest meeting showed some officials were not confident enough about signs of an upturn in growth to alter their guidance that interest rates were likely to stay exceptionally low until late 2014. Yields on 10-year notes turned down 1 basis point to 1.76%. Earlier this week, they fell to levels not seen since October and not much above their all-time low of 1.71%. Thirty-year bond yields turned 3 basis points lower to 2.89%, after recently closing at their lowest level since mid-January. Yields on 5-year notes also turned down 1 basis point to 0.73%, near their lowest closing level of 0.71%, set in late January. Two-year yields fell 2 basis points to 0.27%, after edging up in the past week. Bonds were under slight pressure earlier, following stronger-than-expected. U.S. economic data, but the decline was limited as traders remained focused on Greece.

Stock Report:
U.S. Stocks closed in negative territory again on Wednesday, as concern about Europe’s debt crisis trumped a higher-than-expected housing starts number. The Dow Jones Industrial Average erased an earlier gain and logged its 9th loss in the last 10 sessions, falling 33.45 points (-0.26%) to 12,598.55. The Nasdaq shed 19.72 points (-0.68%) to close at 2874.04, while the S&P 500 fell 5.86 (-0.44%) to 1324.80. Among the losers were JC Penney [JCP 26.75 -6.57] and Abercrombie & Fitch [ANF 39.50 -5.90] after both retailers failed to meet Wall Street earnings expectations. Shares of GE [19.00 +0.60] rallied after announcing the company will resume its quarterly dividend. Facebook will increase the size of its IPO by 25% and could raise as much as $16 billion as strong investor demand for shares of the social network trumps debate about the company’s long-term potential to make money.

Economic Indicators:
16-May
MBA Mortgage Applications: Survey: - Actual: 9.2%
Housing Starts: Survey: 685K Actual: 717K
Building Permits: Survey: 730K Actual: 715K
Industrial Production: Survey: 0.6% Actual: 1.1%
Capacity Utilization: Survey: 79.00% Actual: 7.92%

17-May
Initial Jobless Claims: Survey: 365K Actual: -
Continuing Claims: Survey: 3225K Actual: -
Bloomberg Consumer Comfort: Survey: -38.0 Actual: -
Bloomberg Economic Expectations: Survey: - Actual: -
Philadelphia Fed.: Survey: 10.0 Actual:
Leading Indicators: Survey: 0.1% Actual:

Commentary/New Issues

Corporate:
650mm Legg Mason, Inc. 5.5 5/21/2019; 250mm Cardinal Health 1.9 6/15/2017; 250mm Cardinal 3.2 6/15/2022; 3.5B Ontario Province 0.95 5/26/2015; 350mm Nextera Energy 1.611 6/1/2014; 500mm Rowan COS Inc. 4.875 6/1/2022

Agency:
2.03B FHLB 2.5 6/13/2014 Increase; 1.12B FHLB 2.125 6/10/2016 Increase; 250mm FHLB 0.3 6/17/2013 1-NC3MO BERM; 1B FHLB 0.5 6/16/2014 2-NC1MO INC; 250mm FHLB 0.23 6/12/2013 1-NC; 250mm FNMA Step 5/24/2017 5-NC1 BERINC; 250mm FHLMC 1.3 6/7/2017 5-NC1 BERM

ABS:
Triton sells 5-Yr Container Bond at 4.25% Yield;

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:
Treasury prices extended gains on Thursday, pushing benchmark 10-year yields to match their lowest level, after the Philadelphia Federal Reserve’s index showed an unexpected contraction in manufacturing in the region this month. Yields on 10-year notes fell 5 basis points to 1.71%, matching their lowest closing level ever, set in September. Thirty-year bond yields declined 8 basis points to 2.82%, after recently closing at their lowest level since mid-December. Yields on 5-year notes slipped 1 basis point to 0.74%, not much above their all-time lows. Bonds stayed up after the Treasury Department received good demand for $13 billion in 10-year Treasury Inflation Protected Securities even though they came at the most negative yield ever . The auction is a reopening, meaning the debt sold will carry the same coupon and maturity as the originally issued debt, sold in January. Separately, the government said it would auction $99 billion in debt next week. It will sell $35 billion each in 2-year & 5-year notes and $29 billion in 7-year notes.

Stock Report:
Selling pressure in U.S. stocks accelerated into the close, with the Dow and S&P chalking up a fifth straight day of losses, after Fitch downgraded Greece by one notch to CCC from B-. The ECB ceased to provide liquidity to some Greek banks due to their failure to recapitalize. The Dow Jones Industrial Average fell 156.06 points (1.24%) to 12,442.49, while the S&P plunged 19.94 (-1.51%) to close at 1304.86. The Nasdaq was the biggest loser on the day, erasing 60.35 points (-2.1%) to settle at 2813.69. JPMorgan [JPM 33.93 -1.53] continued to slide after reports that trading losses may grow $1 billion. CEO Jamie Dimon has been called to testify before the Senate Banking Committee as early as next month. Other laggards included Apple [AAPL 530.12 -15.95] and Caterpillar [CAT 87.80 -4.06]. The eagerly anticipated Facebook IPO priced at $38 and is set to begin trading on Friday at 11am.

Economic Indicators:
17-May
Initial Jobless Claims: Survey: 365K Actual: 370K
Continuing Claims: Survey: 3225K Actual: 3265K
Bloomberg Consumer Comfort: Survey: -38.0 Actual: -43.6
Bloomberg Economic Expectations: Survey: - Actual: -1
Philadelphia Fed.: Survey: 10.0 Actual: -5.8
Leading Indicators: Survey: 0.1% Actual: -0.10%

18-May
Revisions: Factory Orders: Survey: Actual:
Revisions: Durable Goods Benchmarks: Survey: Actual:

Commentary/New Issues

Corporate:
300m Aercap Aviation 6.375 5/30/17; 1B Toyota Mtr Cred 1.75 5/22/17; 250m Momentive Perfor 10 10/15/20

Agency:
250m FNMA 1 8/29/16; 4B FNMA 0.5 7/2/15; 1B FHLB 0.5 5/28/14

ABS:
Barclays sells 5-Yr Card Bond at 1ML +85, Increased $100m;

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:
Prices on 5-year Treasury notes rose on Tuesday, pushing yields to their lowest levels ever, as worries about Greece drew investors’ interest in shorter-dated debt. Yields on 5-year notes fell 2 basis points to 0.73%, after touching 0.70%. Yields on 10-year notes were little changed at 1.77%. Thirty-year bond yields turned down 1 basis point to 2.92%, after approaching their lowest level since January. Bonds briefly declined in morning action after a pair of reports showed U.S. retail sales rose 0.1% in April and the government’s consumer-price index was unchanged that month, both in line with analysts’ expectations. Consumer prices, excluding food and energy, rose 0.2% last month, the Labor Department said. The data are unlikely to alter the Federal Reserve’s outlook, which calls for stable inflation after a temporary increase due to oil and gas prices.

Stock Report:
U.S. stocks wavered between gains and losses Tuesday as economic reports only partially deflected the latest breakdown in Greece’s attempts to form a coalition and stay within the euro zone. The Dow Jones Industrial Average rose 12.71 points, or 0.1%, to 12,708.06, with J.P. Morgan Chase & Co. leading blue-chip gains, up 2.7% following its shareholders’ meeting in Florida, where Chief Executive Jamie Dimon survived an effort to take away his title of chairman of the board, with the vote coinciding with media reports that the Justice Department is probing the bank’s $2 billion trading loss. Half of its 30 components fell, led by Home Depot Inc., off 1.9% after the home-improvement retailer’s revenue outlook missed estimates. The S&P 500 Index fell half a point at 1,337.85, with the consumer-discretionary sector faring best among its 10 major industry groups. The Nasdaq Composite Index rose 12.19 points, or 0.4%, to 2,914.77. Decliners outpaced advancers on the New York Stock Exchange, where 437 million shares traded as of 2:15 p.m. Eastern.

Economic Indicators:
15-May
Consumer Price Index (MoM): Survey: 0.00% Actual: 0.00%
Consumer Price Index (YoY): Survey: 2.30% Actual: 2.30%
CPI Ex Food & Energy (MoM): Survey: 0.20% Actual: 0.20%
Empire Manufacturing: Survey: 9.65 Actual: 17.09
Advance Retail Sales: Survey: 0.20% Actual: 0.10%
Retail Less Autos: Survey: 0.20% Actual: 0.10%

16-May
MBA Mortgage Applications: Survey: - Actual: -
Housing Starts: Survey: 685K Actual: -
Building Permits: Survey: 730K Actual: -
Industrial Production: Survey: 0.60% Actual: -
Capacity Utilization: Survey: 79.00% Actual: -

Commentary/New Issues

Corporate:
500m Murphy Oil Corp 4 6/1/22; 600m Talisman Energy 5.5 5/15/42; 500m Prog Ener Car 2.8 5/15/22; 500m Prog Ener Car 4.1 5/15/42; 300m Northern Oil 8 6/1/20; 600 Kommunalbanken FRN 3/27/17; 500m Oncor Electric D 5.3 6/1/42; 400m Oncor Electric D 4.1 6/1/22

Agency:
500m FHLB 0.5 5/28/14; 250m FNMA 0.625 6/4/14; 250m FNMA 0.55 12/4/14; 250m FHLB 0.3 12/6/13; 1.16B FHLB 0.875 12/12/14; 250m FHLB FRN 12/4/13; 500m FHLB 0.5 6/16/14; 500m FHLB 0.46 12/16/13

ABS:
JPMorgan sells $1.6B card bond at 1ML =10, at Par

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:
Treasury prices climbed Monday, sending yields on 10-year notes to their lowest level of the year, as renewed worries about Greece’s political uncertainty encouraged traders to seek the safety of U.S. government debt. Yields on 10-year notes slumped 7 basis points to 1.782%. Yields on 10-year notes hadn’t fallen below 1.80% on a closing basis since October, according to data from FactSet Research. U.S. Treasurys, whose prices move inversely to yields, are seen as a relatively safe-haven investment and traders tend to flock to them at times of financial and economic turmoil. Thirty-year bond yields also declined 7 basis points to 2.944%. And yields on 5-year notes slipped 3 basis points to 0.727%.

Stock Report:
U.S. Stocks declined considerably on Monday, with the S&P 500 hitting a 3-month low, as speculation that Greece may exit the euro zone and fears of a slowdown in China weighed on investors. The Dow Jones Industrial Average slumped 125.25 points, or 0.98%, to close at 12,695.35. The Nasdaq lost 31.24, or 1.06%, to finish at 2902.58 while the S&P 500 dipped below the key 1340 level to 1338.35 (-15.04 or -1.11%). The shakeup at JPMorgan continued with the head of the hedging unit and Chief Investment Officer both announcing retirement from the firm. Shares of JPM dropped 1.17 or 3.17% to 35.79. On the bright side, shares of Groupon rose in after-hours trading, as the daily deal site reported earnings of .02 per share on revenue of $559 million. Analysts were expecting .01 per share and $531 million in revenue.

Economic Indicators:
14-May
No major economic reports

15-May
Consumer Price Index (MoM): Survey: 0.00% Actual: -
Consumer Price Index (YoY): Survey: 2.30% Actual: -
CPI Ex Food & Energy (MoM): Survey: 0.20% Actual: -
Empire Manufacturing: Survey: 9.65 Actual: -
Advance Retail Sales: Survey: 0.20% Actual: -
Retail Less Autos: Survey: 0.20% Actual: -

Commentary/New Issues

Corporate:
850m Republic Svcs 3.55 6/1/22; 250m Cameron Internat 3.6 4/30/22; 250m Cameron Internat 1.6 4/30/15; 500m Int BK Recon&dev 0.55 6/6/14; 550m Westar Energy 4.125 3/1/42; 340m Speedy Cash Inc 10.75 5/15/18; 350m Kellogg Co 1.125 5/15/15; 400m Kellogg Co 1.75 5/17/17; 700m Kellogg Co 3.125 5/17/22

Agency:
2.02B FHLB 2.5 6/13/14; 750m FHLB 0.3 6/14/13; 250m FHLB 0.23 6/18/13; 500m FHLB 0.46 12/5/13; 500m FHLB 0.3 6/14/13; 350m FHLB 0.3 11/15/13; 1B FHLB 0.5 6/5/14; 2.5B FHLB 0.3 6/10/13; 500m FHLB 0.3 6/14/13; 275m FHLB 1 8/24/16

ABS:
No major ABS Deals

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:
Treasury prices edged up on Friday, pushing yields down and adding to the 8th straight weekly fall in yields, the longest since 1998. Yields on 10-year notes, fell 3 basis points to 1.85%. Thirty-year bond yields declined 4 basis points to 3.01%. Yields on 5-year notes slipped 2 basis points to 0.75%. Earlier this week, yields on 10-year, 5-year and 30-year debt all touched their lowest level since early February, as Europe’s plan to tackle its sovereign debt burden seemed to be coming unwound by popular backlash to severe budget cuts. Yields on 10-year notes are down for the eighth straight week. Five-year yields are also down for the eighth straight week, their longest run since last June. Thirty-year yields have fallen for a sixth week, the best since December 2008. But the decline in yields can also be tied to continued accommodative U.S. monetary policy while on the fiscal side, the country is running huge deficits, both without a big payoff in economic growth, he noted. The country is still recovering from a real estate crisis and deflation remains a bigger risk than inflation.

Stock Report:
U.S. Stocks posted a second week of losses after JPMorgan reported a trading loss of $2 billion from a failed hedging strategy. Despite the ripple effect in the banking sector, the major indices managed to stay afloat after the University of Michigan Consumer Sentiment number rose unexpectedly to 77.8 from 76.4 in April. The Dow Jones Industrial Average fell 34.44 points to 12,820.60 and the S&P 500 lost 4.60 points to close at 1353.39. The Nasdaq barely posted a gain, adding a mere .01% to close at 2933.82. JPMorgan saw its biggest selloff in almost 9 months, falling 3.78 (-9.28%) to $36.96. Shares of Citigroup (C 29.35; -1.30), Goldman Sachs (GS 102.13; -4.19), and Morgan Stanley (MS 14.95; -0.65) were all dragged lower on the news of its embattled peer. Next week’s economic calendar is rather light, with the CPI and retail sales numbers due out on Tuesday. The eagerly anticipated Facebook IPO is already oversubscribed and is expected to begin trading on Friday, May 18.

Economic Indicators:
11-May
Producers Price Index (MoM): Survey: 0.0% Actual: -0.20%
PPI Ex Foof & Energy (MoM): Survey: 0.2% Actual: 0.20%
Producers Price Index (YoY) Survey: 2.1% Actual: 1.90%
PPI Ex Foof & Energy (YoY): Survey: 2.8% Actual: 2.70%
U. of Michigan Confidence: Survey: 76.0 Actual: 77.8
Bloomberg Consumer Comfort: Survey: - Actual: -40.4
Monthly Budget Statement: Survey: 30.5B Actual: $59.1B

15-May
Consumer Price Index (MoM): Survey: 0.00% Actual: -
Consumer Price Index (YoY): Survey: 2.30% Actual: -
CPI Ex Food & Energy (MoM): Survey: 0.20% Actual: -
Empire Manufacturing: Survey: 9.65 Actual: -
Advance Retail Sales: Survey: 0.20% Actual: -
Retail Less Autos: Survey: 0.20% Actual: -

Commentary/New Issues

Corporate:
600m Penn Virginia 8.375 6/1/20; 500m Sistema Intl Fd 6.95 5/17/19; 250m Vietinbank 9.875 5/15/19; 450m Magnum Hunter 9.75 5/15/20

Agency:
400m FNMA 0.5 11/24/14; 1.09B FHLB 2.125 6/10/16;

ABS:
Ed. Funding of South Sells 5.2-Yr at 1ML +88, at Par;

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:
Treasury prices pared losses on Thursday after investors showed good demand for the longest U.S. bonds even at ultra-low yields. Bonds remained down though, pushing yields up from their lowest since February, as developments in Europe eased some near-term uncertainty and reduced demand for the relative safe-haven status of U.S. debt. Yields on 10-year notes rose 3 basis points to 1.89%, from 1.92% before the auction. On Wednesday, the benchmark securities closed at their lowest yield in three months. Thirty-year bond yields added 3 basis points to 3.06%, off from 3.10% earlier but still up from their lowest in three months. Yields on 5-year notes stayed up 2 basis points to 0.78%, the first day up in six sessions. The Treasury Department sold $16 billion in 30-year bonds at a yield of 3.09% — below where traders expected the auction to close. It’s been at least a few years since a new sale of 30-year bonds has come at a level lower than traders expected.

Stock Report:
U.S. Stocks faded into the close with the Dow Jones Industrial Average adding 19.98 points on the day, closing at 12,855.04 and snapping a 6-day losing streak. The S&P fared a little better, closing up 3.41 points (+.25%) to 1,357.99. The Nasdaq fell 1.07 points to 2,933.64. The initial optimism was fueled by news that weekly claims for unemployment benefits fell by 1,000 last week to a seasonally adjusted 367,000. Investors also eased fears regarding Greece, as leaders reaffirmed a commitment to remain in the Euro zone. Shares of Pfizer (PFE 22.83 +1.69%) and Chevron (CVX 103.36 +1.55%) led the blue-chip gainers. Cisco shares fell 10.49% to $16.81 after the network equipment maker’s disappointing outlook exacerbated worries about government spending in the United States and Europe. Friday’s economic calendar includes the PPI and the University of Michigan Confidence numbers.

Economic Indicators:
10-May
Import Price Index (MoM): Survey: -0.20% Actual: -0.50%
Import Price Index (YoY): Survey: 0.80% Actual: 0.50%
Trade Balance: Survey: ($50.0B) Actual: ($51.8B)
Initial Jobless Claims: Survey: 362K Actual: 367K
Continuing Claims: Survey: 3275K Actual: 3229K
Bloomberg Consumer Comfort: Survey: - Actual: -40.4
Monthly Budget Statement: Survey: 30.5B Actual: $59.1B

11-May
Producers Price Index (MoM): Survey: 0.0% Actual: -
PPI Ex Foof & Energy (MoM): Survey: 0.2% Actual: -
Producers Price Index (YoY) Survey: 2.1% Actual: -
PPI Ex Foof & Energy (YoY): Survey: 2.8% Actual: -
U. of Michigan Confidence: Survey: 76.0 Actual: -

Commentary/New Issues

Corporate:
250mm Crosstex Energy 7.125 6/1/22; 1.25B Ford Motor Cred. 2.75 5/15/15; 485mm Tekin-Plex Inc. 9075 6/1/19; 500.1mm Bank of NY Mellon Step 6/20/17; 500mm Discovery Commun 3.3 5/15/22 ; 600mm Florida Pwr & Lt 4.05 6/1/42; 500mm Discovery Commun 4.95 5/15/42; 300mm Beam Inc. 1.875 5/15/17; 300mm Beam Inc. 3.25 5/15/22; 1.5B Slovak Republic 4.375 5/21/22; 2.25B Sweden Kingdom 0.375 5/18/15.

Agency:
500mm FNMA 0.65 5/22/15 3-NC1 BERINC;

ABS:
Chesapeake Funding Sells Fleet Bond at 1ML +75, at Par;

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:
Treasury prices eased on Wednesday as the euro-zone rescue fund agreed to pay out emergency funds for Greece on schedule despite political turmoil in the country. Yields on 10-year notes bounced back to 1.84% from 1.82% earlier. Yields on 30-year bonds edged up 1 basis point to 3.04% and yields on 3-year notes rose 2 basis points to 0.38%. The Treasury Department also sold $24 billion in 10-year notes at a yield of 1.855%, with bidders offering to buy 2.09 times the amount of debt sold. Indirect bidders, a group which includes foreign central banks, purchased 38.7%, and direct bidders, which include domestic money managers, bought another 15.8%. On the U.S. economic front, wholesale inventories rose 0.3% in March to $480.4 billion, while wholesale sales rose 0.5% to $411.1 billion.

Stock Report:
U.S. Stocks tumbled on the open amid concerns over Greece’s debt crisis and inability to form a coalition government. The Dow Jones fell as much as 185 points in early trading but rebounded considerably after the board of the European Financial Stability Facility agreed to make a 5.2 billion euro payment in emergency aid to Greece. The benchmark index closed -97.03 at 12,835.06, while the S&P lost 9.14 points (-.67%) to close at 1354.58. The Nasdaq fell 11.56 (-.39%), ending the day at 2934.71. Notable earnings reports included Macy’s (M 38.05, -1.46 or -3.7%), who’s shares dropped after the retailer kept its full-year profit forecast despite beating earnings estimates. The drama continued at Yahoo, as hedge-fund manager Daniel Loeb demanded that CEO Scott Thompson resign immediately and suggested that he be replaced by the internet company’s CFO or global head of media on an interim basis. Thursday’s economic calendar includes the weekly jobless claims data and Fed-speak from Chairman Bernanke.

Economic Indicators:
9-May
MBA Mortgage Applications: Survey: - Actual: 1.70%
Wholesale Inventories: Survey: 0.60% Actual: 0.30%

10-May
Import Price Index (MoM): Survey: -0.20% Actual: -
Import Price Index (YoY): Survey: 0.80% Actual: -
Trade Balance: Survey: ($50.0B) Actual: -
Initial Jobless Claims: Survey: 362K Actual: -
Continuing Claims: Survey: 3275K Actual: -
Bloomberg Consumer Comfort: Survey: - Actual: -
Monthly Budget Statement: Survey: 30.5B Actual: -

Commentary/New Issues

Corporate:
360m GRD Holding III 10.75 6/1/19; 465m Carlson Wagonlit 6.875 6/15/19; 300m Carlson Wagonlit 7.5 6/15/19

Agency:
268m FLCC 0.32 5/16/14; 255.46m FHLB 0.875 3/10/17; 1B FHLB 0.42 5/23/14; 1B FHLB 0.3 6/10/13; 2B FHLB 0.3 6/10/13; 850m FNMA 0.5 10/30/14

ABS:
TAL Advantage sells container bond at 3.9% Yield; GE sells $750m Floorplan at 1ML +75, at Par

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:
Treasury prices rose on Tuesday, pushing some benchmark yields down for a fifth session, as political uncertainty in Greece increased the appeal of the relative safety of U.S. bonds and supported the government’s first of three major auctions this week. Yields on 10-year notes, which move inversely to prices, fell 4 basis points to 1.83%, their lowest level since early February. Yields on 5-year notes declined 2 basis points to 0.76%, the fifth daily decline and the lowest level seen in three months. Thirty-year-bond yields fell 4 basis points to 3.02%, extending a four-day slide. Bonds stayed up after the Treasury Department sold $32 billion in 3-year notes a yield of 0.362%, the lowest level since February. The all-time low was 0.334%, set in September 2011. The auction is the first of three this week as part of the government’s quarterly refunding. It will issue 10-year notes on Wednesday, followed by 30-year bonds on Thursday. Both may come at the lowest yields on record. At the same time, U.S. economic reports have come in soft to mixed, including a disappointing report on Friday showing the labor market grew more slowly in April, which also makes Treasury bonds more attractive.

Stock Report:
U.S. Stocks recovered more than half of their losses after an initial plunge over Greece’s inability to form a coalition government. The Dow Jones Industrial Average fell as much as 198 points but managed to only give up 76.44 points on the day. However, it did close below the key 13,000 level at 12,932.09, logging a five-day losing streak. The Nasdaq dropped 11.49 (-.39%) to 2946.27 and the S&P 500 shed 5.86 points (-.43%) to close at 1363.72. The consumer discretionary sector led the laggards, with shares of Fossil (FOSL) falling 37.57%, or 47.25 points, to $78.52 after the fashion accessories maker slashed its full-year guidance due to weakness in Europe. Shares of Disney (DIS) rose in after-hours trading after reporting better-than-expected earnings of .58 a share (versus estimates of .55).

Economic Indicators:
8-May
NFIB Small Business Optimism: Survey: 93.00 Actual: 94.5
IBD/TIPP Economic Optimism: Survey: 48.00 Actual: 48.5

9-May
MBA Mortgage Applications: Survey: - Actual: -
Wholesale Inventories: Survey: 0.60% Actual: -

Commentary/New Issues

Corporate:
750m Motorola 3.75 5/15/2022; 875m Penske Truck 3.75 5/11/2017; 875m Penske Truck 3.125 5/11/2015; 1B Diageo Inv Corp 2.875 5/11/2022; 500m Diageo Inv Corp 4.25 5/11/2042; 1B Diageo Cap Plc 1.5 5/11/2017; 1.1B Georgia Power 4.3 3/15/2042; 350m Berkshire Hath 3 5/15/2022; 500m Berkshire Hath 4.4 5/15/2042; 400m Georgia Power 2.85 5/15/2022; 750m Berkshire Hath 1.6 5/15/2017; 600m IBM Corp 1.875 5/15/2019; 900m IBM Corp 0.75 5/11/2015

Agency:
250m FHLB .33 11/26/2013; 250m FHLB .23 5/17/2013; 1.92B FHLB 2.5 6/13/2014; 250m FHLB .28 11/21/2013; 250m FHLB 0.3 11/15/2013; 500m FHLB 0.29 11/8/2013; 250m FNMA 1.0 5/29/2015; 250m FHLB 0.29 11/14/2013; 250m FNMA 0.75 11/24/2015;

ABS:
Santander sells 2.4-YR auto bond at is +135, yield 1.949%

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:
Yields on 10-year notes fell as low as 1.83% during the European session. They lately headed back to 1.88%, little changed on the day but still their lowest closing level since early February. Yields on 5-year notes edged down 1 basis point to 0.78%, their lowest level in three months. Thirty-year bond yields fell 1 basis point to 3.06%, their lowest level since late February. Traders may also be positioning for the main events for the week: the Treasury Department’s trio of auctions known as the quarterly refunding. The government will sell 3-year notes, 10-year notes and 30-year bonds starting Tuesday. Three-year notes slipped 1 basis point Monday at 0.36%. If the auction comes at that level, it would be the lowest since February. Last week ended with a rally for bonds after a report showed the U.S. economy created fewer jobs in April than expected, and the labor force shrank because Americans dropped out. The data reinforced worries about the outlook for economic growth, boosting interest in safer assets like U.S. bonds instead of stocks that have pushed yields down for the longest weekly run since the depth of the U.S. credit crisis more than three years ago.

Stock Report:
U.S. Stocks were mixed on Monday, shrugging off concerns over French incumbent Nicolas Sarkozy’s defeat to Socialist candidate Francois Hollande. The Dow Jones Industrial Average posted a 4th day of losses, closing down 29.74 points, but did come off of its low for the day to keep above the key 13,000 level. The S&P moved up .48 to 1369.58 and the Nasdaq added 1.42 points to close at 2957.76. Banks rallied on the day, led by Bank of America, Goldman Sachs and Morgan Stanley. The first day of the Facebook IPO road show was met with mixed reviews, as some investors felt short-changed by the brief Q&A and all of the hoopla that ensued at the New York Sheraton Hotel.

Economic Indicators:
7-May
Consumer Credit: Survey: $9.650B Actual: $21.355B

8-May
NFIB Small Business Optimism: Survey: 93.00 Actual: -
IBD/TIPP Economic Optimism: Survey: 48.00 Actual: -

Commentary/New Issues

Corporate:
450m PSE&G 3.95 5/1/2042

Agency:
250m FHLB .28 11/14/2013; 250m FHLB .29 11/8/2013; 250m FHLB Frn 8/15/2014

ABS:
No ABS deals came to market.

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:
Treasury prices rose Friday, pushing 10-year yields to their lowest level in three months, after a report on the U.S. labor market in April. The data reinforced worries about the outlook for economic growth, boosting interest in safer assets like U.S. bonds instead of stocks that have pushed yields down for the longest weekly run since the depth of the U.S. credit crisis more than three years ago. Yields on 10-year notes fell 6 basis points to 1.88%. A close at that level would be the lowest for the benchmark yields since Feb. 2. Yields on 5-year notes declined 4 basis points to 0.79%, their lowest since early February. Thirty-year-bond yields fell 5 basis points to 3.07%, the lowest since early March. Yields have hovered this week near their lowest level since February as more recent data left investors disappointed and worried about the U.S. economy’s growth potential. The U.S. Labor Department said the economy added 115,000 jobs in April, fewer than economists expected. It also showed the number of jobs added in March and February were revised upward and the unemployment rate fell to 8.1% as people dropped out of the labor force.

Stock Report:
U.S. stocks closed sharply lower Friday, sending the S&P 500 and Nasdaq Composite to their worst weeks of the year, after lighter-than-forecast jobs growth and unease over the outcome of upcoming French and Greek elections prompted a broad selloff. The Dow Jones Industrial Average lost 168.32 points, or 1.3%, to 13,038.27 and sank 1.4% for the week. The S&P 500 lost 22.47 points, or 1.6%, to 1,369.10, led by tech and energy stocks. Only utilities were higher. For the week, the index lost 2.4%. The Nasdaq Composite fell 67.96 points, or 2.3%, to 2,956.34, its worst day of the year. It lost 3.7% for the week. Heavyweight Apple Inc. fell 6.3% for the week.

Economic Indicators:
4-May
Change in Nonfarm Payrolls: Survey: 160K Actual: 115K
Change in Private Payrolls: Survey: 165K Actual: 130K
Change in Manufact. Payroll: Survey: 20K Actual: 16K
Unemployment Rate: Survey: 8.20% Actual: 8.10%
Avg. Hourly Earning MOM All Emp: Survey: 0.20% Actual: 0%
Avg. Hourly Earning YoY All Emp: Survey: 2.00% Actual: 1.80%
Aveg. Weekly Hours All Employees: Survey: 34.5 Actual: 34.5
Change in Household Employment: Survey: - Actual: -169.0
Unemployment Rate (U6): Survey: - Actual: 14.50%

7-May
Consumer Credit: Survey: $9.650B Actual: -

Commentary/New Issues

Corporate:
450mm Central Garden 8.25 3/1/2018; 400mm CNG Holdings Inc. 9.375 5/15/2020

Agency:
1.84B FHLB 2.5 6/13/2014;

ABS:
No ABS deals came to market.

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.