Commonwealth Bank of Australia prices $1.25 billion notes; Japan Bank, EIB eye deals

By Cristal Cody

Tupelo, Miss., July 9 – Corporate high-grade issuance stayed quiet again on Monday, while the Commonwealth Bank of Australia came with $1.25 billion of five-year covered notes.

Credit spreads tightened during the session.

The Markit CDX North American Investment Grade 30 index firmed about 2 basis points to a spread of 62 bps.

Corporate supply is expected to resume this week after no issuance last week and less than $5 billion of volume in the prior week, sources report.

Coming up on Tuesday, Japan Bank for International Cooperation plans to price three tranches of guaranteed bonds that are registered with the Securities and Exchange Commission. Price talk emerged on the notes on Monday.

Also on Tuesday, the European Investment Bank is expected to bring a benchmark-sized dollar-denominated offering of five-year global notes to the primary market.

Syndicate sources forecast about $15 billion to $20 billion of volume for the week.

Market participants are looking toward Friday when corporate earnings releases begin with the expectations for additional issuance of paper.

Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. all release second quarter earnings results on Friday.

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