Quiet deal streak breaks; Bank of Montreal, Toyota, PacifiCorp, Japan Bank, EIB price

By Cristal Cody

Tupelo, Miss., July 10 – After more than a week of radio silence in the corporate high-grade primary market, several issuers priced new bonds on Tuesday.

Bank of Montreal sold $2.25 billion senior medium-term notes in two parts.

Toyota Motor Corp. brought $2 billion of fixed-rate senior notes in three tranches on Tuesday following marketing at the end of June.

Also, PacifiCorp placed $600 million of 31-year first mortgage bonds.

In other high-grade supply, Japan Bank for International Cooperation priced $3.5 billion of guaranteed senior bonds in three tranches on the tight side of guidance.

The European Investment Bank also sold $4 billion of five-year global notes better than price talk.

On Monday, the Commonwealth Bank of Australia priced $1.25 billion of five-year covered bonds as the sole reported issuer in the primary market.

Syndicate sources forecast about $15 billion to $20 billion of deal supply this week, a marked pickup from zero corporate issuance in the previous holiday week and less than $5 billion of volume in the prior week.

The Markit CDX North American Investment Grade 30 index closed mostly unchanged at a spread of 62 basis points after tightening about 2 bps on Monday.

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