World Bank, Realty Income price as market focuses on Fed; Target mostly tighter

By Cristal Cody and Aleesia Forni

Virginia Beach, June 18 – World Bank and Realty Income Corp. came to Wednesday’s primary market while other issuers stayed on the sidelines as the Federal Reserve’s Federal Open Market Committee wrapped up its two-day meeting.

As expected, the Federal Reserve trimmed its monthly bond-purchasing program by another $10 billion to $35 billion.

The quieter primary saw World Bank bring to market $4.5 billion of two- and seven-year notes, while Realty Income sold a $350 million offering.

Realty Income’s new 10-year issue sold around 15 basis points tighter compared to initial price guidance, and the deal’s orderbook was around three times oversubscribed.

The pace of issuance in the investment-grade bond market is expected to resume on Thursday, according to market sources.

Around $16.2 billion of new paper has priced this week, so far falling in line with earlier expectations of $15 billion to $20 billion of supply.

Investment-grade bonds tightened following the FOMC policy announcement, and spreads headed out about 2 bps tighter, according to market sources.

Realty Income’s 3.875% notes due 2024 traded mostly wrapped around issuance in the secondary market, according to a trader.

Target Corp.’s new senior notes (A2/A/A-) were mixed in trading but remained tighter than where the notes priced on Tuesday, a trader said.

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