Morning Commentary: Sumitomo Mitsui, Boardwalk Pipelines bonds on tap; BNP Paribas improves

By Cristal Cody

Eureka Springs, Ark., Jan. 5 – Primary action over Thursday’s session is expected to include at least two new investment-grade bond deals.

Sumitomo Mitsui Financial Group, Inc. plans a two-part sale of senior notes, while Boardwalk Pipelines, LP is preparing an offering of 10-year senior notes.

In the secondary market, BNP Paribas’ $1.75 billion issue of 3.8% senior non-preferred medium-term notes due Jan. 10, 2024 that was brought to market on Tuesday traded about 13 basis points tighter.

High-grade secondary trading volume was heavy on Wednesday with $22.37 billion of issues traded, compared to $12.8 billion in the previous session, according to Trace.

The three-month Libor yield was unchanged at 100 bps early Thursday, a market source said.

BNP Paribas tightens

BNP Paribas’ 3.8% notes due Jan. 10, 2024 traded better at 147 bps offered in the secondary market, according to a source early Thursday.

BNP Paribas sold $1.75 billion of the notes (Baa2/A-) on Tuesday at a spread of 160 bps over Treasuries.

The banking and financial services company is based in Paris.

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