Morning Commentary: High-grade primary quiet at week’s start; Japan Finance on roadshow

By Cristal Cody

Tupelo, Miss., Jan. 27 – Investment-grade primary supply stayed quiet at the start of Monday’s session.

Front-loaded bond issuance ahead of the Federal Reserve’s monetary policy decision due on Wednesday is expected by market sources.

About $20 billion to $25 billion of high-grade volume is forecast for this week, according to syndicate sources.

More than $17 billion of high-grade corporate bonds were priced last week, bringing year-to-date issuance to over $100 billion.

No rate changes are anticipated from the Federal Reserve at the January meeting, sources report.

Meanwhile on Monday, Japan Finance Organization for Municipalities (A1/A+) kicks off a roadshow for a dual-currency bond offering that includes Rule 144A and Regulation S dollar-denominated green bonds and a debut offering of euro-denominated notes.

J.P. Morgan Securities plc, Mizuho Securities Co., Ltd., Merrill Lynch International and Barclays are the bookrunners.

Elsewhere in the secondary market, high-grade corporate trading volume totaled $19.45 billion on Friday, according to Trace data.

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