Morning Commentary: Duke Realty offers notes; ConEd to price bonds; Alberta talks notes

By Cristal Cody

Tupelo, Miss., Nov. 5 – The high-grade fixed-income primary market is set to see corporate and sovereign, supranational and agency issuance over Tuesday’s session.

Duke Realty Corp. is marketing new 10-year senior notes after the company held fixed income investor calls on Monday.

Consolidated Edison Co. of New York, Inc. intends to price fixed-rate debentures a day after parent company Commonwealth Edison Co. came with $300 million of 30-year first mortgage bonds.

Also, the Province of Alberta plans to sell dollar-denominated five-year registered global notes on Tuesday.

The notes due Nov. 13, 2024 are initially talked to print in the mid-swaps plus 30 basis points area, a source said.

About $10 billion of bonds priced on Monday, buoyed by renewed confidence in global trade with China, sources report.

Investment-grade supply is expected to reach the $25 billion to $30 billion area over the week.

So far, volume has been led by Shell International Finance BV’s $4 billion three-tranche deal that priced on Monday.

Shell’s bonds traded about 1 bp to 3 bps tighter in the secondary market, a source said.

The company’s tranche of 2.375% notes due Nov. 7, 2029 improved about 2 bps.

Shell sold $1.5 billion of the 10-year notes at a 68 bps over Treasuries spread.

Overall high-grade secondary market volume totaled $17.95 billion on Monday, according to Trace data.

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