Morning Commentary: High-grade deal pipeline fills with bond offerings; Lowe’s notes active

By Cristal Cody

Tupelo, Miss., May 10 – At least five issuers plan to tap the U.S. high-grade market on Wednesday with new bond offerings.

Export Development Canada is offering U.S. dollar bonds.

Swedish Export Credit Corp. is selling three-year dollar notes.

Eversource Energy intends to price 10-year debentures.

State Street Corp. is marketing fixed-to-floating rate notes.

Also, Select Income REIT is eying a sale of seven-year senior notes.

In secondary activity over the morning, Lowe's Cos., Inc.’s notes (A3/A-) that priced in April improved.

In the broader high-grade bond market, secondary trading volume jumped to $21.2 billon on Tuesday, compared to $16.42 billion on Monday, Trace reported.

Lowe's better

Lowe's 3.1% notes due May 3, 2027 traded up to 99.40 early Wednesday from where the notes went out in the previous session at 99.12, a market source said.

The notes are down from a high of 100.29 on May 2.

Lowe’s sold $1.5 billion of the 10-year notes at 99.846 to yield 3.118% and a spread of Treasuries plus 90 basis points on April 19.

The company’s 4.05% notes due May 3, 2047 also improved in early secondary trading. The notes were seen on Wednesday morning at 99.29, up from where the notes last traded on Tuesday at 98.80.

The notes had a high of 100.31 on April 21.

The company sold $1.5 billion of the bonds at 99.364 to yield 4.087%, or a spread of Treasuries plus 120 bps, in the April 19 offering.

The home improvement company is based in Mooresville, N.C.

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