Morning Commentary: NextEra Energy, European Bank for Reconstruction to price; Lowe’s mixed

By Cristal Cody

Tupelo, Miss., April 25 – Primary action in the high-grade bond market shaped up early Tuesday with at least two issuers in the deal pipeline.

NextEra Energy Capital Holdings, Inc. is marketing 10-year guaranteed debentures.

The European Bank for Reconstruction and Development (Aaa/AAA/AAA) plans to price a benchmark-sized offering of three-year medium-term global notes. BofA Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and TD Securities (USA) LLC are the lead managers.

Investment-grade issuers priced less than $3 billion of bonds on Monday.

About $15 billion to $20 billion of supply is forecast for the week by syndicate sources.

In secondary market activity on Tuesday, Lowe's Cos., Inc.’s notes (A3/A-) that priced in the previous week were mixed.

In the broader high-grade bond market, secondary trading volume totaled $16.14 billion on Monday, according to Trace.

Lowe's mixed

Lowe's 3.1% notes due May 3, 2027 climbed on Tuesday to trade at 100.12 from where the notes went out on Monday at 99.93, a market source said.

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

The company’s 4.05% notes due May 3, 2047 softened a dime in early secondary trading to 99.40.

Lowe’s sold $1.5 billion of the 30-year notes on Wednesday at 99.364 to yield 4.087%, or Treasuries plus 120 bps.

The building supplies and home improvement retailer is based in Mooresville, N.C.

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