Morning Commentary: Three deals on tap; American Honda Finance firms; Libor yield up

By Cristal Cody

Eureka Springs, Ark., Sept. 8 – High-grade primary action is expected to slow for the remainder of the week following two days of strong supply. Only a few investment-grade bond issuers were set to price during Thursday’s session.

Entergy Mississippi, Inc., Bemis Co., Inc. and GATX Corp. are in the deal pipeline.

In the secondary market, American Honda Finance Corp.’s 2.3% notes due 2026 that priced on Tuesday improved 4 basis points.

Mitsubishi UFJ Financial Group, Inc.’s 2.757% senior notes due 2026 brought to market on Tuesday traded flat to 1 bp wider than issuance.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 72 bps.

The three-month Libor yield was up 1 bp at 84 bps early Thursday.

Secondary trading volume rose to $16.45 billion on Wednesday from $12.62 billion on Tuesday, according to Trace.

American Honda firms

American Honda Finance’s 2.3% notes due 2026 traded tighter at 76 bps offered, a market source said.

The company sold $500 million of the notes (A1/A+) on Tuesday at 80 bps over Treasuries.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

MUFG mostly unchanged

Mitsubishi UFJ Financial Group’s 2.757% senior notes due 2026 traded flat to 1 bp softer at 124 bps offered, according to a market source.

Mitsubishi UFJ sold $1 billion of the 10-year notes (A1/A/A) on Tuesday at a spread of 123 bps over Treasuries.

The bank is based in Tokyo.

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