Morning Commentary: General Mills offers notes; deal pipeline builds; market activity thins

By Cristal Cody

Tupelo, Miss., Oct. 4 – General Mills, Inc. is in the deal pipeline with an offering of five-year notes on Wednesday.

A handful of other investment-grade issuers also are preparing to price bonds in the near-term horizon, an informed source said.

Market activity was mostly quiet early Wednesday, sources reported. The financial markets in China are closed for a holiday.

In the secondary market, General Mills’ last offering of bonds, the 3.2% notes due Feb. 10, 2027, traded modestly better at 100.28 at the start of the session, a source said. The notes went out on Tuesday at 100.18.

General Mills sold $750 million of the notes (A3/BBB+/BBB+) on Jan. 9 at 99.58 to yield 3.249%, or a spread of 87.5 basis points over Treasuries.

Secondary trading volume jumped to $18.79 billion on Tuesday from $14.63 billion on Monday, according to Trace.

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