Investment-grade supply quiets; Fannie Mae offers notes; AT&T firms; Dollar Tree steady

By Cristal Cody

Tupelo, Miss., April 11 – Deal action stayed fairly quiet in the high-grade bond market on Wednesday.

No primary action was reported in the U.S. market during the session, while the Canadian primary market saw supply.

CCL Industries Inc. priced C$300 million of 3.864% 10-year senior notes (Baa2/BBB-/) at par to yield a spread of 165 basis points over the interpolated Government of Canada bond curve on Wednesday.

Fannie Mae announced plans at the start of the day to price three-year benchmark notes. The offering is expected to close on Friday.

In the secondary market, bank and financial paper traded mostly flat to about 5 bps softer, a source said.

In other secondary trading, AT&T Inc.’s 3.9% notes due Aug. 14, 2027 (Baa1/BBB+/A-) firmed 2 bps on Wednesday after softening 5 bps in the previous session, a market source said.

The Justice Department was presenting its final government witness on Wednesday in its antitrust suit to stop AT&T’s $85.4 billion cash and stock acquisition of Time Warner Inc.

Time Warner’s 2.95% notes due July 15, 2026 (Baa2/BBB/BBB+) were flat on the day at 121 bps bid, the source said.

In new issue secondary trading, Dollar Tree, Inc.’s senior notes (Baa3/BBB-/) priced a week ago were mostly unchanged on the day, a source said.

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