Pre-holiday investment-grade supply quiets; Takeda notes mostly better

By Cristal Cody

Tupelo, Miss., July 1 – High-grade primary action quieted on Wednesday with no reported issuers offering bonds over the session.

Issuance is likely finished for the week with the markets set to close early at 2 p.m. ET on Thursday and remain closed until Monday for the Independence Day holiday, a source said.

Supply week to date totals about $15 billion, in line with the $10 billion to $15 billion of volume expected by market participants for the week.

Volume was strong on Monday with $12.5 billion of issuance led by Takeda Pharmaceutical Co., Ltd.’s $7 billion four-part offering of senior notes (Baa2/BBB+/) and Sumitomo Mitsui Financial Group Inc.’s $3 billion two-tranche sale of senior notes (A1/A-/).

On Tuesday, $2.4 billion of notes were priced from issuers including Societe Generale SA, Mondelez International, Inc. and Guardian Life Global Funding.

Investment-grade supply is expected to decline in July to about $100 billion or less, down from more than $184 billion of issuance in June.

Takeda’s $7 billion of registered senior notes (Baa2/BBB+/) priced in four tranches on Monday improved about 4 bps to 9 bps in secondary trading after pricing.

The notes were mostly better across the tranches in heavy trading on Wednesday.

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