Week of December 11, 2011 thru December 17, 2011

US Senate Passes FY'12 Omnibus, 2-Month Payroll Tax Cut Extend


--Senate Approves $915B Omnibus Spending Bill, Sends Bill To Obama
--Senate Sends 2 Month Payroll Tax Cut Extension To House
--House Expected To Return To DC Early Next Week To Approve Payroll Plan

WASHINGTON (MNI) - The Senate Saturday passed a $915 billion fiscal year 2012 omnibus spending bill and a two-month extension of last year's payroll tax cut and a renewal of unemployment insurance benefits.

The Senate passed the FY'12 omnibus spending bill on a 67 to 32 vote.

The House passed the same omnibus spending bill Friday so the bill now gets President Obama's signature.

The omnibus spending bill funds the nine fiscal year 2012 bills that had not yet been approved.

US Senate To Vote Sat On FY'12 Omnibus, 2-Month Payroll Extend


--Senate Set To Follow House, Pass $915B Omnibus Spending Bill
--Senate Leaders Agree To 2 Month Payroll Extend: Battle Resumes In Feb

WASHINGTON (MNI) - The Senate will convene for a rare Saturday session and is expected to vote on a $915 billion fiscal year 2012 omnibus spending bill and a two-month extension of last year's payroll tax cut and unemployment insurance benefits.

Earlier Friday, the House passed the omnibus spending bill on a 296 to 121 vote.

The Senate is expected to approve the same spending bill Saturday.

The current stop-gap spending bill expires at midnight Friday, but the White House has said the federal government will not shut down because Senate passage of the omnibus spending bill is imminent.

TheFXSpot: Risk Sentiment Shaky in Near-term; ECB LTRO Eyed


NEW YORK, Dec 16 (MNI) - Risk sentiment remained shaky Friday, with very little on the near-term horizon taking place in the eurozone to potentially surprise in a positive way, traders said.

Talk From The Trenches: Fear Continues To Boost Treasuries


NEW YORK, Dec 16 (MNI) - The longer end of the U.S. Treasury curve continued to move higher Friday and there never seems to be any relief on the fear front.

EPFR Global:Inflows Into MBS Fnds Shld Be Sustainable Into '12


WASHINGTON (MNI) - The latest fund flow data, while continuing to reflect 'disillusionment' with a resolution of the EMU debt crisis, also suggest that "Mortgage-Backed Bond Funds look set to break the full year inflow record, with current inflows equal to 144% of the 2009 total," EPFR Global said Friday.

US$ CREDIT SUPPLY PIPELINE - December 16, 2011


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

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/15 1250 *JPM (Aa3/A) 30 T+250 JPM 12/15 6000 *Freddie Mac Reference Note 3 T+34 BNP/DB/UBS US/N.Am 66%, Asia 11%, Oth 23% Invest Mgrs 55%, CBs 32%

U.S. Treasury Auctions Date $BN Descr/Mat/Stop B/C Dirs Indirs Dealers 12/19 35 Treasury 2-Year 12/20 35 Treasury 5-Year 12/21 29 Treasury 7-Year

Coming Soon: Freddie Mac to announce Reference Note Thu, 12/22

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

U.S.

Next Wk/US: Hsing Starts, Durables,Existing Home Sales,U/Mich


PRINCETON (MNI) - The week ahead leads up to the Christmas holiday and the bond market will close early on Friday, December 23, and will be closed on Monday, December 26.

The proximity to the holiday means that the second-tier data releases will get scant attention, and markets will concentrate on the few big reports for the week -- namely housing starts, existing home sales and new orders for durable goods. Some of the data will be released slightly sooner than usual to allow for holiday schedules.

The December 26 week will be quite similar, with Friday, December 31, seeing any early close in the bond market, and a full close on Monday, January 2, 2012.

US$ CREDIT SUPPLY PIPELINE - December 16, 2011


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

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/15 1250 *JPM (Aa3/A) 30 T+250 JPM 12/15 6000 *Freddie Mac Reference Note 3 T+34 BNP/DB/UBS US/N.Am 66%, Asia 11%, Other 23% Invest Mgrs 55%, CBs 32% 12/14 500 *BAX (A3/A) 5 T+100 BAML/C/JPM 12/14 850 *GE Capital Corp (Aa2/AA+) 1.5 3mL+60 BAML FRN 12/13 500 *PPL Energy (Baa2/BBB) 10 T+262.5 DB/RBS/SCO/WFS

U.S.

Federal Reserve State of Play - By Steve Beckner - 16 Dec '11


At its final meeting of 2011 on Dec. 13 the Fed's policymaking Federal Open Market Committee refrained from easing credit further, but said it is "prepared" to do so.

US Swaptions: Steady/Higher, Spreads Turn Wider, Ratings Watch


CHICAGO, Dec 16 (MNI) - Over-the-counter swaption premiums opened steady to lower Friday, but looked to take on a firmer tone just after midday amid growing concerns of multiple ratings agency downgrades of the Eurozone.