Morning Commentary: High-grade bond action light as session starts; Sunoco preps two-part deal

By Cristal Cody

Tupelo, Miss., Sept. 19 – High-grade bond market activity started the session off mostly quiet with one reported issuer in the deal pipeline.

Sunoco Logistics Partners Operations LP is offering two tranches of guaranteed senior notes.

Activity is expected to be fairly light with the Federal Reserve’s Federal Open Market Committee’s two-day monetary policy meeting starting on Tuesday, sources said. No major changes are expected, according to market sources.

In the investment-grade secondary market, Sunoco’s 3.9% notes due July 15, 2026 (Baa3/BBB-/BBB-) traded better at 99.28 early Tuesday, a source said. The notes went out on Monday at 98.97.

Sunoco sold $550 million of the notes on July 7, 2016 at 99.696 to yield 3.937% and a spread of Treasuries plus 255 basis points.

Investment-grade secondary trading volume on Monday totaled $16.8 billion, Trace reported.

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