U.S. Bancorp, TD Ameritrade, Telefonica price notes; credit spreads tighten; AT&T firms

By Cristal Cody

Tupelo, Miss., April 24 – High-grade issuers priced about $2.6 billion of corporate bonds over Monday’s session in a light start to the week.

U.S. Bancorp priced $1.3 billion of 3.15% 10-year medium-term senior notes at a spread of 87.5 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The series X notes (A1/A+/AA) priced at 99.94 to yield 3.157%.

TD Ameritrade Holding Corp. tapped the primary market with $800 million of 10-year senior notes.

Also, Telefonica Emisiones SAU priced a $500 million add-on to its 5.213% 30-year senior notes.

“Quiet today,” a market source said.

Deal volume is expected to stay light over the week with about $15 billion to $20 billion of supply forecast by syndicate sources.

Looking to Tuesday’s supply, the European Bank for Reconstruction and Development plans to offer three-year notes.

The Markit CDX North American Investment Grade index tightened nearly 3 bps to close Monday at a spread of 64 bps.

In the secondary market, AT&T Inc.’s 4.25% notes due 2027 firmed 2 bps.

Verizon Communications Inc.’s 4.125% notes due 2027 traded about 1 bp better.

Bank and financial paper was mixed.

Mitsubishi UFJ Financial Group, Inc.’s 3.677% senior notes due Feb. 22, 2027 improved about 2 bps.

Citigroup, Inc.’s 4.75% subordinated notes due May 18, 2046 were unchanged on the day.

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