EIB, Quebec, CDK bring new bond deals; bank, financial paper firms; AT&T, Wal-Mart ease

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 8 – The European Investment Bank and the Province of Quebec joined a sole new corporate deal from CDK Global Inc. during Wednesday’s high-grade primary session.

Weak economic data out of China coupled with the release of the Federal Reserve’s minutes from its September policy meeting kept most issuers on the sidelines on Wednesday.

However, following a slight upswing in the market’s tone at midday, CDK Global emerged with a new deal announcement, ultimately pricing a $750 million two-part offering of notes in five- and 10-year tranches.

Meanwhile, Quebec sold $1.6 billion of 10-year notes at the tight end of talk, and EIB came to market with $1 billion of notes due 2024.

Wednesday’s primary activity pushes the week’s total investment-grade new issuance to $10.2 billion.

Investment-grade bond spreads tightened over the session on Wednesday, sources said.

The Markit CDX North American Investment Grade series 23 index firmed 3 basis points to a spread of 67 bps.

Bank and financial paper improved, while telecom bonds traded wider on the day, market sources said.

Citigroup Inc.’s 2.5% notes due 2019 tightened about 4 bps in the secondary market, according to a market source.

AT&T Inc.’s 4.8% notes due 2044 headed out 4 bps wider, a source said.

Wal-Mart Stores Inc.’s 3.3% notes due 2024 that were reopened on Tuesday traded 1 bp softer from where the notes priced, according to a market source.

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