Precision Castparts, Estee Lauder price; Shell tightens; Exxon, ConocoPhillips wider

By Aleesia Forni and Cristal Cody

Virginia Beach, June 1 – The investment-grade bond market was showing signs of fatigue Monday following the $159.47 billion of new paper priced in May.

Tranches of Precision Castparts Corp.’s $2 billion four-part new issue of notes sold between 5 basis points tight to 5 bps wide of initial talk.

Meantime, Estee Lauder Cos. Inc. was forced to widen price thoughts on its $300 million of 30-year bonds by 10 bps.

Marathon Oil Corp. sold a $2 billion three-part note offering, while Starbucks Corp. priced $850 million in two tranches.

Barclays plc priced a $1 billion five-year note after scrapping plans for an additional five-year floating-rate tranche.

Despite the market’s rocky session, sources are expecting primary activity to continue on Tuesday.

Landwirtschaftliche Rentenbank is slated to price a benchmark offering of 10-year notes in the session ahead, setting price talk for the planned offering in the area of mid-swaps plus 10 bps.

Around $25 billion of paper is predicted to price during June’s opening week.

Energy bonds were mixed in secondary trading on Monday.

Shell International Finance BV’s 2.125% notes due 2020 tightened 4 bps.

Exxon Mobil Corp.’s 2.709% notes due 2025 edged 1 bp wider over the day.

ConocoPhillips Co.’s senior notes (A1/A/) traded flat to 1 bp weaker.

Southwestern Energy Co.’s 4.95% senior notes due 2025 were unchanged.

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