Morning Commentary: Mitsubishi UFJ offers notes; market eyes more financial supply

By Cristal Cody

Tupelo, Miss., July 17 – Mitsubishi UFJ Financial Group, Inc. is marketing six tranches of senior notes in the high-grade primary market on Tuesday.

The deal includes floating-rate and fixed-rate notes due July 2021, floating-rate and fixed-rate notes due July 2023, an add-on to the company’s 3.961% notes due March 2, 2028 and new fixed-rate notes due July 2038.

Mitsubishi UFJ Financial Group originally sold $500 million of the 10-year notes on Feb. 26 at par to yield a spread of Treasuries plus 110 basis points.

Financial supply is expected to dominate primary action over the week after banks release earnings reports.

On Monday, JPMorgan Chase & Co., Wells Fargo Bank NA, Citigroup Inc. and Citibank, NA priced nearly $14 billion of notes. The companies released second-quarter profit results on Friday.

Goldman Sachs Group Inc. released its earnings results before the market opened on Tuesday, and Morgan Stanley will post its quarterly earnings on Wednesday.

About $25 billion of supply is expected this week, according to syndicate sources.

In other activity over the morning, Freddie Mac announced in a news release that it will forgo an offering of Reference Notes on Tuesday.

Looking at the high-grade secondary market, $16.36 billion of bonds traded on Monday, according to Trace.

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