Morning Commentary: Moody’s, Caterpillar Financial Services on tap; FHLBank prices

By Cristal Cody

Tupelo, Miss., Dec. 3 – Moody’s Corp. marketed a two-part offering of investment-grade senior notes as the week opened on Monday.

Caterpillar Financial Services Corp. was offering new series I medium-term floating-rate notes.

Federal Home Loan Bank System also announced at the start of the session that it priced a $250 million reopening of its 3.25% Global Notes due Nov. 16, 2028.

About $15 billion to $20 billion of high-grade issuance is expected by market sources for the first week of December.

Volume is expected to decline over the rest of the month with only about $25 billion to $30 billion of total supply predicted for December, according to syndicate sources.

More than $30 billion of bonds priced in the previous week.

Stocks rallied over the morning over president Donald Trump’s agreements to delay tariffs on Chinese goods that were set to take effect Jan. 1, pending further talks.

The nation also was preparing for an official day of mourning for former president George Bush on Wednesday. The U.S. government, as well as U.S. stock and bond markets, will be closed on Wednesday.

The Securities Industry and Financial Markets Association said in a release on Monday that it is “also recommending that secondary market cash transactions in U.S. government and federal agency securities, executed on Tuesday, Dec. 4, 2018 and normally settling on Wednesday, Dec. 5, 2018, should instead settle on Thursday Dec. 6, 2018 where practical.”

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