Morning Commentary: Procter & Gamble in pipeline; United Technologies eases; Wells Fargo flat

By Cristal Cody

Eureka Springs, Ark., Oct. 31 – High-grade bond issuers including Illinois Tool Works, Inc., CMS Energy Corp. and Procter & Gamble Co. are in the deal pipeline, according to filings on Monday with the Securities and Exchange Commission.

The Markit CDX North American Investment Grade index opened unchanged at a spread of 78 basis points after softening 2 bps on Friday.

The three-month Libor yield was steady at 89 bps at the start of Monday’s session.

In the secondary market, United Technologies Corp.’s new 3.75% senior notes due 2046 traded about 1 bp softer from where they were quoted on Friday afternoon.

Wells Fargo & Co.’s 3% notes due 2026 were unchanged.

On Friday, $14.29 billion of high-grade issues were traded, according to Trace.

United Technologies eases

United Technologies’ 3.75% notes due 2046 traded about 1 bp softer at 120 bps bid, according to a market source.

The company sold $1.1 billion of the 30-year notes (A3/A-) on Thursday at a spread of 118 bps over Treasuries.

United Technologies is a Hartford, Conn.-based company that provides technology products and services to the building and aerospace industries.

Wells Fargo stable

Wells Fargo’s 3% notes due 2026 were unchanged at 121 bps offered, according to a market source.

The notes (A2/A/AA-) were sold in a $3.5 billion tranche on Oct. 19 at a spread of Treasuries plus 130 bps.

The retail, commercial and corporate banking services provider is based in San Francisco.

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