Week of December 11, 2011 thru December 17, 2011

US Corporate Bond Chatter: Risk-Off Tone Amid EZ Rating Risk


NEW YORK, Dec 12 (MNI) - Low investment-grade corporate bond supply landed Monday on the new debt offerings calendar, amid a risk-off mood in the credit market as disappointment lingered over Friday's EU heads of state summit.

US CongressWeek: Still Seek Payroll Tax Cut,UI Extension Deal


--House Republicans Schedule Tuesday Vote On Their Alternative
--Democratic Leaders Say House GOP Plan Won't Fly in the Senate
--House, Senate Appropriators Near Accord On $900 Billion FY'12 Package
--Senate To Vote On Balanced Budget Constitutional Amendment
--Congress Is Trying To Conclude Its Work By Friday

WASHINGTON (MNI) - Congress appears to be nearing an agreement on a massive nine bill $900 billion spending package to complete action on the 2012 fiscal year budget, but there are no signs yet of an accord on a separate package that would extend last year's payroll tax cut, renew uninsurance benefits, and approve other end-of-the-year items.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 300 CAT (A2/A) MTN 3 BAML/JPM 12/12 600 Banco de Bogota (Baa2/BBB-) 5 C/HSBC/JPM 144A Reg S, talk 5.25% area Chatter that order book very oversubscribed.

U.S. Treasury Auctions Date $BN Descr/Mat/Stop B/C Dirs Indirs Dlrs 12/12 32 Treasury 3-Year Auction 12/13 21 Treasury reopened 10-Year Auction 12/14 13 Treasury reopened 30-Year Auction 12/15 12 Treasury reopened 5-Year TIPS Auction

>>Scroll Down for More More Muni & Agency Supply/Calendars

Coming Soon Freddie Mac to announce Reference Note Wed, 12/14 and Thu, 12/22

U.S.

US Swaps: Mostly Wider, Spd Curve Flatter Ahead Tsy Supply


CHICAGO, Dec 12 (MNI) - Spreads kicked off the new week mostly wider, front end lead the spread curve flatter early Monday amid light flow.

US$ CREDIT SUPPLY PIPELINE - December 12, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/12 300 CAT (A2/A) MTN 3 BAML/JPM 12/12 500 Banco de Bogota (Baa2/BBB-) 5 C/HSBC/JPM Talk 5.50% area Chatter that order book very oversubscribed.

U.S. Treasury Auctions Date $BN Descr/Mat/Stop B/C Dirs Indirs Dlrs 12/12 32 Treasury 3-Year Auction 12/13 21 Treasury reopened 10-Year Auction 12/14 13 Treasury reopened 30-Year Auction 12/15 12 Treasury reopened 5-Year TIPS Auction

>>Scroll Down for More More Muni & Agency Supply/Calendars

Coming Soon Freddie Mac to announce Reference Note Wed, 12/14 and Thu, 12/22

U.S.

MNI US Retail Trade Weekly Index 57.3 Thru Dec 10 Vs 56.5


NEW YORK (MNI) - MNI's U.S. retail trade index rose eight tenths in the Dec. 10 period to 57.3, well over 50 to indicate solid growth in year-on-year business conditions, according to the results of Market News International's weekly survey released Monday.

Total sales are a year-on-year +4.5%, unchanged for the third week in a row, while same-store sales edged one tenth lower to +2.5%.

When adjusted for a monthly reading, MNI's data point to no change for the November retail sales headline. Ex-auto is indicated at -0.1% with ex-auto ex-gas at -0.6%.

Guidance from the sample is very steady, indicating an extension of current year-on-year sales rates through the holidays.

Spain Gross Bond Sales YTD Is E87.6Bn Or 93.4% Projection


LONDON (MNI) - Spain has sold E87.6 billion worth of bonds so far this year, which equates to around 93.4% of its initially projected medium-and long-term gross funding plans, said the Publico Tesoro.

In an investor presentation on its Web site, the debt agency said "non-resident investors have been of instrumental importance throughout various periods of uncertainty".

"The geographical distribution of holdings of government bonds has remained relatively stable during the last two years", added the Tesoro.

In addition, the Tesoro said that Spain's refinancing risk remains subdued thanks to a longer average life, which is 6.66 years, as of Nov 30, which compares to 6.7 years at the end of 2010.

Mexico Oct Industrial Prod +3.3% Yr/Yr, Mfg +4.0% -INEGI


--Construction Jumps 4.7%, Utilities +3.6%
--Output Falls 0.54% SA vs Sept, Manufacturing Drops 0.4%

MEXICO CITY (MNI) - Industrial production in Mexico increased 3.3% in October compared to October 2010, driven by strong showings in manufacturing and construction, state statistics agency INEGI reported Monday.

Manufacturing rose 4.0% year-over-year, continuing two years of uninterrupted increases, though it was the smallest gain since May, while construction rose 4.7%, the report said.

As it has in recent months, INEGI cited broad manufacturing strength for the year-over-year rise, with increased output in areas including transportation equipment; food, and beverage and tobacco; machinery and equipment; computer equipment; metals; and plastics.

ECB Bond Buys Slow Further To E635 Mln in Week Ended Dec 9


FRANKFURT (MNI) - The European Central Bank announced on Monday that it had settled E635 million worth of sovereign debt purchases in the week ending December 9, its lowest level since early August, following E3.662 billion settled in the week ending December 2 and E8.581 billion the week before.

The ECB purchases settled last week bring the cumulative total still on the bank's balance sheet to E207.5 billion. As usual, the central bank said it will seek to sterilize the entire amount through a quick tender to collect one-week term deposits.

The deposit tender, to be held Monday at 1030 GMT/0530 ET, will be conducted as a variable-rate operation with a maximum bid rate of 1.0%, the ECB said.

ECB Calls For Bids In 7-Day Tender At Fixed Rate Of 1.0%


--ECB Sees Benchmark Allotment At E35.5 Bln Based On Dec 12 Forecast

FRANKFURT (MNI) - The European Central Bank called Monday for bids on its weekly seven-day refinancing agreements at a fixed rate of 1.0%.

It said that based on its liquidity forecast Monday, the benchmark allotment amounted to a net addition of E35.5 billion. The central bank also announced that the average autonomous factors for the period between today and December 20 is estimated at E214.8 billion.

Last week, the ECB allotted E252.1 billion in an 7-day auction; those refis expire Tuesday.

Bids for the new refis are due by 0830 GMT on Tuesday.

-- Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com --

[TOPICS: M$$CR$,M$X$$$,M$XDS$,MN$MM$,M$$EC$]