T-Mobile eyed; front-loaded supply forecast; UnitedHealth, U.S. Bancorp firm

By Cristal Cody

Tupelo, Miss., July 26 – High-grade issuers stayed out of the primary market on Friday following a strong week of volume that beat forecasts.

Investment-grade issuers priced more than $23 billion of bonds in the first four sessions of the week, compared to about $15 billion to $20 billion of supply forecast.

A potential bond deal in the $10 billion to $15 billion range from T-Mobile U.S. Inc. is being eyed to price after the company on Friday received federal antitrust approval to acquire Sprint Corp.

Las Vegas Sands Corp. continued a second day of fixed income investor calls.

Looking to next week, market focus shifts to a possible rate cut at the Federal Reserve’s monetary policy meeting that ends Wednesday. A trim of 25 basis points is anticipated by market participants. About $20 billion to $25 billion of deal volume is forecast with issuance expected to be front-loaded ahead of the meeting

New issues priced this week are trading mostly better than issuance.

UnitedHealth Group Inc.’s $5.5 billion of senior notes (A3/A+/A-) priced in five tranches on Tuesday were about 3 bps to 6 bps tighter than issuance on Friday.

U.S. Bancorp’s $2.25 billion of notes priced in two tranches on Wednesday firmed about 1 bp to 8 bps in the secondary market.

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