Morning Commentary: Ryder offers notes; MUFG, Goldman paper mixed; secondary volume heavy

By Cristal Cody

Tupelo, Miss., Feb. 16 – The high-grade bond market looks set to see at least one deal over the session.

Ryder System, Inc. announced that it is marketing medium-term notes.

In the secondary market, Mitsubishi UFJ Financial Group, Inc.’s senior notes (A1/A/A) that priced on Wednesday traded flat to about 2 basis points better than issuance.

Goldman Sachs Group Inc.’s notes (A3/A) that were reopened on Monday were mixed.

Secondary trading volume has been heavy over the week. On Wednesday, $24.6 billion of high-grade issues were traded, compared to $23.7 billion traded on Tuesday and $16.6 billion traded on Monday, according to Trace.

MUFG flat to tighter

Mitsubishi UFJ Financial Group’s 2.998% notes due Feb. 22, 2022 firmed about 2 bps to 98 bps offered, according to a market source.

The company priced $1 billion of the five-year notes on Wednesday at a spread of Treasuries plus 100 bps.

Mitsubishi UFJ Financial Group’s 3.677% notes due Feb. 22, 2027 traded wrapped around issuance in the 118 bps area.

The $1 billion tranche of 10-year notes priced at a Treasuries plus 118 bps spread in Wednesday’s offering.

The bank is based in Tokyo.

Goldman mixed

Goldman Sachs’ 3% notes due April 26, 2022 traded unchanged early Thursday at 99.62, a market source said.

Godman Sachs priced $1 billion of the five-year notes in a reopening on Monday at 99.711 to yield 3.061% and a spread of 115 bps over Treasuries.

The tranche originally priced in a $2.25 billion offering on Jan. 23 at 99.68 to yield 3.067%, or 120 bps over Treasuries.

Goldman Sachs’ 3.85% notes due Jan. 26, 2027 edged up to 99.96 early Thursday from where the paper last traded at 99.89 in the previous session.

The company sold $1.25 billion of the 10-year notes in a reopening on Monday at 100.146 to yield 3.832%, or Treasuries plus 140 bps.

Goldman Sachs originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%, or Treasuries plus 148 bps.

The banking, securities and investment management company is based in New York.

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