Morning Commentary: Municipality Finance tightens spread; Quebec plans SEC-registered deal

By Cristal Cody

Tupelo, Miss., June 27 – At the start of Wednesday’s session, Municipality Finance plc set the spread on a $1 billion Rule 144A and Regulation S offering of three-year notes at mid-swaps plus 3 basis points, tighter initial price talk in the mid-swaps plus 5 bps area, a source said.

The book size was more than $1.5 billion.

Quebec also was offering Canadian dollar-denominated global notes early Wednesday that are registered with the Securities and Exchange Commission.

In other deal activity, Toyota Motor Credit Corp. is marketing three tranches of SEC-registered senior notes with fixed income investor calls for the offering held in the United States, Europe and Asia on Tuesday.

Week to date, about $2.5 billion of high-grade corporate bonds have priced.

About $15 billion to $20 billion of supply is expected by market sources for the week.

Financial markets were recovering over the morning after a volatile overnight session, a source said.

Elsewhere, secondary trading was heavy on Tuesday with $21.2 billion of high-grade volume, up from $15.51 billion on Monday, according to Trace.

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