Morning Commentary: Carpenter on deck; Japan International Cooperation markets bonds

By Cristal Cody

Tupelo, Miss., July 10 – The high-grade primary market stayed fairly quiet early Friday with one split-rated issuer expected over the session, sources note.

Carpenter Technology Corp. plans to price $400 million of eight-year split-rated senior notes (Ba3/BBB-/) following marketing on Thursday.

Meanwhile, Japan International Cooperation Agency is expected to hold fixed income investor calls over the day for dollar-denominated registered 10-year guaranteed bonds.

More than $17 billion of corporate high-grade bonds and nearly $19 billion of sovereign, supranational and agency notes have priced week to date.

About $20 billion to $25 billion of deal volume was expected for the week.

Overall inflows remained strong over the past week ended Wednesday in the high-grade space in corporate bonds, agencies, Treasuries and mortgages, BofA Securities, Inc. analysts said in a note released Friday.

U.S. investment-grade bond fund and ETF inflows totaled $8.33 billion for the holiday-shortened week, down from an $11.02 billion inflow in the prior week.

High-grade inflows were led by $5.26 billion into ETFs and $6.6 billion into the high-grade space excluding short-term, according to the note.

Short-term high-grade inflows totaled $1.73 billion, while funds inflows came to $3.07 billion for the week.

Refinitive Lipper US Fund Flows reported on Thursday that investment-grade corporate fund inflows totaled $7.18 billion, up from $7.07 billion in the previous week.

Investment-grade market tone was modestly positive over the morning.

The iShares iBoxx Investment Grade Corporate Bond ETF edged up 0.04% to 136.12.

The Pimco Investment Grade Corporate Bond index was up 0.2% at 115.45.

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