Morning Commentary: Telus, Trimble intend to tap primary market; Western Union, Union Pacific firm

By Cristal Cody

Tupelo, Miss., June 7 – Investment-grade deal volume is set to continue over Thursday’s session with two reported issuers marketing bonds at the start of the day.

Telus Corp. is on deck with a 30-year note offering.

Trimble Inc. plans to price five- and 10-year senior notes.

Corporate and agency issuers already have priced more than $31 billion of high-grade bonds over the past three days, compared to the $25 billion of deal volume syndicate sources expected for the entire week.

New corporate bonds priced earlier in the week are trading mostly tighter, a source said. Western Union Co.’s 4.25% notes due June 9, 2023 firmed 2 basis points after issuance in the secondary market, according to the market source.

Western Union sold $300 million of the five-year senior notes (Baa2/BBB/BBB+) on Wednesday at 99.92 to yield 4.268%, or a spread of Treasuries plus 145 bps.

Union Pacific Corp.’s $6 billion of fixed-rate senior notes (A3/A-) that priced in seven tranches on Tuesday have improved about 3 bps on the short end to 10 bps on the long end in the secondary market, the source said.

Union Pacific’s 3.95% notes due Sept. 10, 2028 were quoted about 4 bps tighter in the 102 bps area. The company sold $1.5 billion of the notes at 99.751 to yield 3.978% and a Treasuries plus 105 bps spread.

Overall investment-grade secondary market volume totaled $19.24 billion on Wednesday, compared to $18.30 billion on Tuesday and $16.04 billion on Monday, according to Trace data.

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