Morning Commentary: High-grade primary action quiet on Friday after busy start to week

By Devika Patel

Knoxville, Tenn., Aug. 23 – The high-grade bond market stayed quiet over the morning on Friday, with no new deals announced or pricing.

The week, however, had been busy early on, bringing several large new issues to market. Among these, on Monday, Boston-based Boston Properties LP, the operating subsidiary of real estate investment trust Boston Properties, Inc., sold $700 million of 2.9% senior notes due March 15, 2030 at 99.954 to yield 2.905%.

The notes (Baa1/A-/BBB+) priced with a spread of 130 basis points over Treasuries.

Also on Monday, Maplewood, Minn.-based product manufacturer 3M Co. priced $3.25 billion of notes (A1/AA-) in four tranches.

The company sold $500 million of 1.75% notes due Feb. 14, 2023 at 99.619 to yield 1.864%, or a spread of Treasuries plus 37.5 bps.

A $750 million tranche of 2% notes due 2025 priced at 99.399 to yield 2.117%, or 65 bps over Treasuries.

3M sold $1 billion of 2.375% 10-year notes at 98.918 to yield 2.498%. The notes priced with a Treasuries plus 90 bps spread.

The company priced $1 billion of 3.25% 30-year notes at a spread of 130 bps over Treasuries. The bonds priced at 97.69 to yield 3.373%.

On Tuesday, New York’s Bank of New York Mellon Corp., a financial products and services company, priced $1 billion of 1.95% three-year senior notes (A1/A/AA-) at 99.968 to yield 1.961%, or a spread of Treasuries plus 52 bps.

And on Wednesday, Tokyo-based financial services and investment company Development Bank of Japan Inc. priced $1.8 billion of senior notes (A1/A) in two tranches: an $800 million tranche of 1.75% notes due Aug. 28, 2024 priced 99.9 to yield mid-swaps plus 40 bps, and the bank sold $1 billion of 1.875% notes due Aug. 28, 2029 at 98.98 to yield mid-swaps plus 54 bps.

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