Morning Commentary: Japan Bank of International Cooperation, EBRD market notes; Tyson active

By Cristal Cody

Tupelo, Miss., July 12 – At least two issuers plan to tap the high-grade primary market on Wednesday, while market participants also have an eye on Federal Reserve chairman Janet Yellen’s Congressional testimony and a widely expected Bank of Canada rate hike during the session.

Japan Bank for International Cooperation is marketing four tranches of dollar-denominated guaranteed bonds.

The European Bank for Reconstruction and Development plans to price $500 million of global floating-rate notes due July 19, 2020. The notes were initially talked to price in the Libor plus 1 basis point area. BofA Merrill Lynch, HSBC Bank plc and RBC Capital Markets, LLC are the lead managers.

The three-month Libor yield was down 1 bp to 1.3% over the morning, a source said.

In the secondary market, Tyson Foods Inc.’s 3.55% senior notes due June 2, 2027 (Baa2/BBB/BBB) have traded heavily over the past few sessions, a market source said.

The notes softened to 101.77 over the morning after going out on Tuesday at 102.54. On Monday, the notes last traded at 101.09.

The Springdale, Ark.-based food company sold $1.35 billion of the notes on May 23 at 99.833 to yield 3.57%, or a spread of Treasuries plus 128 bps.

Investment-grade secondary market volume totaled $17.46 billion on Tuesday, up from $13.97 billion on Monday, according to Trace.

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