Morning Commentary: High-grade deal pipeline fills; Barclays, Duke Energy ease; Libor yield stable

By Cristal Cody

Eureka Springs, Ark., Aug. 29 – Several high-grade issuers are expected to tap the market on Monday, breaking expectations of a mostly quiet week ahead of the Labor Day holiday.

Coca-Cola Co., Toronto-Dominion Bank and the Canadian Imperial Bank of Commerce are planning to price new bond offerings.

In the secondary market, Barclays plc’s 3.2% notes due 2021 that priced at the start of the month traded about 1 basis point weaker early Monday but remain more than 20 bps tighter than issuance.

Duke Energy Corp.’s 3.75% senior notes due 2046 eased about 1 bp and are trading about 4 bps better than where the bonds priced earlier in August.

The three-month Libor yield was stable at 83 bps early Monday.

On Friday, $9.4 billion of high-grade issues were traded, according to Trace.

Barclays softens

Barclays’ 3.2% notes due 2021 softened about 1 bp to 188 bps offered in secondary trading, according to a market source.

Barclays sold $1.35 billion of the notes on Aug. 3 at a spread of 215 bps over Treasuries.

The financial services company is based in London.

Duke Energy eases

Duke Energy’s 3.75% notes due 2046 traded about 1 bp weaker at 146 bps offered in the secondary market, a source said.

The notes (Baa1/BBB+/BBB+) priced on Aug. 9 in a $1.5 billion tranche at 150 bps over Treasuries.

The diversified energy company is based in Charlotte, N.C.

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