Rentenbank sets talk; primary quiet to begin new year; bank, financial paper mostly soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 5 – The investment-grade bond market began the first full week of the new year on a quiet note.

The session saw Landwirtschaftliche Rentenbank announce plans to price an offering of bonds, while other potential issuers stayed on the sidelines on Monday amid a weaker backdrop.

“Softer tone today,” one market source said, adding that the primary market should see its first signs of life during the session on Tuesday.

Sources are calling for around $25 billion of supply to price during the first full week of the new month, which is expected to see more than $100 billion of new issuance.

Investment-grade bank and financial paper and credit spreads ended Monday’s session mostly weaker, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 2 basis points to a spread of 69 bps.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded 5 bps softer in the secondary market, a source said.

Citigroup Inc.’s 3.75% notes due 2024 headed out 3 bps weaker.

Bank of America Corp.’s 4% notes due 2024 eased 2 bps from Friday, according to a market source.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were flat.

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