Supply increases; JPMorgan, Wells Fargo, Citigroup, Citibank tap primary; Toyota prices

By Cristal Cody

Tupelo, Miss., July 16 – Bank and financial issuers priced nearly $14 billion of investment-grade paper on Monday.

JPMorgan Chase & Co. brought $5.5 billion of floating-rate and fixed-to-floating-rate notes in three tranches, upsized from an initial two-part expected offering.

Wells Fargo Bank NA priced a $3.25 billion two-tranche sale of senior bank notes.

Citigroup Inc. came with $2.5 billion of 30-year notes, while Citibank, NA priced $2.5 billion of fixed- and floating-rate notes in two tranches.

In other primary action on Monday, Toyota Motor Credit Corp. priced $700 million of medium-term notes in two tranches.

About $25 billion of overall deal volume is forecast for the week, according to syndicate sources.

The week on average has posted $26 billion of average high-grade bond issuance from 2011 to 2017, according to a BofA Merrill Lynch note released on Monday.

Investment-grade issuers priced more than $10 billion of bonds in the previous week, while no supply came over the July 4 holiday week.

The Markit CDX North American Investment Grade 30 index was mostly unchanged on the day at a spread of 61 basis points.

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