Morning Commentary: Supply thins ahead of holiday; Fannie Mae plans benchmark notes

By Cristal Cody

Tupelo, Miss., July 2 – One high-grade bond issuer is preparing to tap the primary market ahead of the early market closure on Wednesday.

Fannie Mae announced it intends to price a benchmark-sized offering of notes due July 2, 2024.

Barclays, CastleOak Securities, LP, Citigroup Global Markets Inc. and Nomura Securities International, Inc. are the lead managers.

Otherwise, the high-grade bond market saw light activity at the start of Tuesday’s session with no issuance so far week to date.

Market sources said they expect zero up to about $5 billion of supply this week.

The U.S. bond markets will close early at 2 p.m. ET on Wednesday and remain closed on Thursday for the Independence Day holiday.

Coming up on Friday, Osaka, Japan, electronics company Panasonic Corp. plans to start a global roadshow for a Rule 144A and Regulation S dollar-denominated note offering, a source said.

BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the arrangers.

Overall deal volume is expected to reach the $75 billion to $80 billion area in July, sources report.

While the primary market stayed quiet on Monday, the secondary market saw activity, sources said.

About $16.33 billion of high-grade bonds traded over the previous session, according to Trace data.

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