Primary slows; ConEd prices; Manitoba prints $500 million; Microsoft, Anheuser-Busch widen

By Cristal Cody

Eureka Springs, Ark., June 14 – Investment-grade primary action on Tuesday included only two deals, a new corporate offering and a provincial bond sale, ahead of the completion of the Federal Reserve’s meeting on Wednesday, according to market sources.

Consolidated Edison Co. of New York, Inc. tapped the primary market with $550 million of series 2016A debentures on Tuesday at 99.859 to yield 3.858%, according to an FWP filing with the Securities and Exchange Commission.

The debentures due June 15, 2046 (A2/A-/A-) priced with a spread of 142 basis points over Treasuries.

Manitoba priced $500 million of 10-year debentures at 62.25 bps plus Treasuries.

The Canadian primary market was quiet over the session, but there is “potential for a deal here later in the week,” a syndicate source said. “The market is not terrible, it’s just not as robust as we have seen. There’s more market volatility, perhaps due to Brexit, that has people on the sidelines.”

The Markit CDX North American Investment Grade index ended the day more than 2 bps weaker at a spread of 84 bps.

In the secondary market, bonds traded mostly softer.

Microsoft Corp.’s bonds (Aaa/AAA/AA+) were active over the session and headed out weaker.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 widened about 7 bps from Monday.

Aetna Inc.’s 4.375% senior notes due 2046 traded 5 bps wider than where the bonds priced earlier in the month.

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