Morning Commentary: Investment-grade bond supply quiets; Eversource Energy notes firm

By Cristal Cody

Tupelo, Miss., Dec. 11 – The high-grade primary market stayed quiet at the start of Tuesday’s session with no reported issuers marketing bonds.

On Monday, Eversource Energy and Mercy Health priced $1.2 billion of investment-grade issues.

Syndicate sources expected zero to about $5 billion of issuance for the week in front of the year-end holiday closures.

In the secondary market, Eversource Energy’s new 4.25% notes due April 1, 2029 (Baa1/A/BBB+) tightened 5 basis points, a source said.

The company sold $500 million of the notes on Monday at a spread of Treasuries plus 147 bps. Price guidance was in the Treasuries plus 150 bps area, plus or minus 3 bps. The notes were initially talked in the 155 bps over Treasuries spread area.

The secondary market ended Monday with $18.97 billion of high-grade issues traded, according to Trace data.

General Motors Co.’s senior notes (Baa3/BBB/BBB) priced in a $2.1 billion three-part deal on Sept. 5 were among the most active investment-grade issues traded in the previous session.

The company’s 5% notes due Oct. 1, 2028 opened slightly better early Tuesday at 94.96 to yield 5.676% from 94.76 to yield 5.704% on Monday. The issue was quoted going out at 94.77 to yield 5.702% on Friday.

The Detroit-based automaker sold $750 million of the 10-year notes at 99.965 to yield 5.004%, or a spread of 210 bps over Treasuries.

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