U.S. Bancorp prices $500 million; steady supply forecast; AbbVie notes tighten; BNG firms

By Cristal Cody

Tupelo, Miss., Sept. 14 – U.S. Bancorp tapped the high-grade primary market on Friday with a $500 million offering of three-year notes.

The deal brings investment-grade bond volume over the week to more than $30 billion.

Looking ahead to the upcoming week, market sources expect steady supply of about $25 billion to $30 billion.

Volume is expected to thin over the back half of the month following heavy issuance in the first two weeks when nearly $90 billion of bonds priced, sources said.

In the secondary market, new issues priced this week mostly traded better, according to market sources.

AbbVie Inc.’s $6 billion four-tranche offering of fixed-rate senior notes (Baa2/A-/) priced Thursday tightened 3 basis points to 7 bps in secondary trading.

Bank Nederlandse Gemeenten NV’s $2.5 billion Rule 144A and Regulation S offering of 3% notes due Sept. 20, 2023 sold in the previous session were quoted nearly 2 bps tighter on Friday.

The Markit CDX North American Investment Grade 30 index closed mostly flat at a spread of 56 bps.

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