Wells Fargo brings $2.5 billion bank notes following FOMC meeting; Citigroup, Goldman firm

By Aleesia Forni and Cristal Cody

New York, March 16 – Wells Fargo Bank NA sold a $2.5 billion issue of bank notes in new and reopened tranches on Wednesday as the Federal Open Market Committee wrapped up its two-day policy meeting.

In a move that was widely anticipated, the Federal Reserve kept its benchmark interest rate unchanged at 0.25% to 0.5%.

The Federal Reserve noted that economic activity has expanded at “a moderate pace” despite global economic developments in recent months.

Following the quiet sessions the market has seen this week, a pickup in activity is expected on Thursday, with one market source calling for “at least a few” new deals to price.

Roughly $15.2 billion of new investment-grade issuance has entered the primary so far this week.

Investment-grade bonds were mixed in secondary trading on Wednesday.

Citigroup Inc.’s 3.7% subordinated notes due 2026 traded 3 bps better over the day.

Goldman Sachs Group Inc.’s 3.75% senior notes due 2026 tightened 5 bps in the secondary market.

Morgan Stanley’s 3.875% senior notes due 2026 eased 1 bp during the session.

Mitsubishi UFJ Financial Group, Inc.’s new 3.85% senior notes due 2026 were unchanged on the day.

The Markit CDX North American Investment Grade index improved following the Federal Reserve meeting to close 3 basis points tighter at a spread of 86 bps.

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