Export Development Canada, Fannie Mae price; bank paper firms; U.S. Bancorp tightens

By Cristal Cody

Eureka Springs, Ark., April 22 – Primary action slowed as expected on Friday in the high-grade bond market.

Export Development Canada sold $500 million of two-year floating-rate notes.

Fannie Mae tapped the market during the session with a $3.5 billion offering of 10-year Benchmark Notes with a spread of 34.5 basis points over Treasuries.

Commercial banks, government and other investors made up the largest percentages of investor types, Fannie Mae said.

Investment-grade volume is expected to stay light in the $15 billion to $20 billion range in the week ahead against the backdrop of the weekend Passover holiday and the Federal Reserve’s policy meeting on Tuesday and Wednesday, sources said.

In the secondary market, U.S. Bancorp’s new 3.1% subordinated medium-term notes due 2026 traded about 4 bps tighter on Friday.

Mitsubishi UFJ Financial Group, Inc.’s reopened notes were trading about 1 bp to 5 bps tighter than where the paper priced on Tuesday.

Goldman Sachs Group Inc.’s 2.625% notes due 2021 headed out about 1 bp better on the day.

Wells Fargo & Co.’s 3% senior notes due 2026 that were reopened over the week traded 3 bps better than issuance on Friday.

The Markit CDX North American Investment Grade index firmed 1 bp to close at a spread of 73 bps.

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