Morning Commentary: Primary action light; 3M offers three tranches of notes; 3M notes mixed

By Cristal Cody

Tupelo, Miss., Sept. 21 – 3M Co. is marketing three tranches of notes on Thursday to fund tender offers to purchase outstanding bonds.

Otherwise, investment-grade bond market activity was mostly light over the morning following the Federal Reserve’s hawkish monetary policy statement on Wednesday.

In the secondary market, 3M’s last offering of senior medium-term notes (A1/AA-) that priced a year ago was mostly unchanged over the morning, a source said.

The company’s 1.625% notes due Sept. 19, 2021 traded early Thursday at 98.47, weaker from where the notes went out in the previous session at 98.69.

3M sold $650 million of the notes on Sept. 14, 2016 at 99.95 to yield 1.64%, or a spread of Treasuries plus 43 basis points.

3M’s 2.25% notes due Sept. 19, 2026 were last seen trading on Wednesday at 95.72.

The company sold $650 million of the notes in the 2016 offering at 98.92 to yield 2.37% and a spread of 68 bps over Treasuries.

3M’s 3.125% notes due Sept. 19, 2046 last traded on Tuesday at 91.73. The Maplewood, Minn.-based producer of Post-it notes and Scotch office tape sold $500 million of the bonds at 95.34 to yield 3.37% and a Treasuries plus 93 bps spread.

Secondary trading volume totaled $18.83 billion on Wednesday, Trace said.

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