Morning Commentary: Intel, Caterpillar, Amgen in deal pipeline; Amgen notes modestly better

By Cristal Cody

Tupelo, Miss., May 8 – Strong investment-grade issuance is expected over the day with several issuers set to tap the primary market.

Intel Corp. is marketing five tranches of senior notes.

Caterpillar Financial Services Corp. intends to reopen its 3.3% medium-term notes due June 9, 2024.

Amgen Inc. is offering five tranches of senior notes.

Also, PPL Electric Utilities Corp. is in the deal pipeline with a 30-year first mortgage bond offering.

About $30 billion to $35 billion of supply is expected by syndicate sources for the week.

The three-month Libor yield was unchanged at 1.18% early Monday.

Amgen’s senior notes traded modestly better in the secondary market on Monday.

On Friday, $13.6 billion of high-grade bond issues were traded, Trace reported.

Amgen improves

Amgen’s 2.25% notes due Aug. 19, 2023 rose to 96.83 on Monday from where the notes last traded at 96.59 on Friday, according to a market source.

Amgen sold $750 million of the notes on Aug. 10 at 99.749 to yield 2.289% and a spread of 95 bps over Treasuries.

Amgen’s 2.6% notes due Aug. 19, 2026 rose to 93.73 on Monday from where the notes last traded at 93.17 on Friday.

The company sold $1.25 billion of the notes on Aug. 10 at 99.939 to yield 2.607%, or a spread of 110 bps over Treasuries.

Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.

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