U.S. Bancorp, Scotiabank, Rentenbank bring $3.45 billion bonds; Citi, Wells Fargo better

By Cristal Cody

Eureka Springs, Ark., July 19 – High-grade issuers priced $3.45 billion of bonds during Tuesday’s mostly quiet session in the U.S. primary market.

U.S. Bancorp sold $1.35 billion of 10-year senior notes and dropped a planned subordinated note tranche.

The 10-year series V medium-term senior notes carry a 2.375% coupon and priced at 99.268 to yield 2.458%, or 90 basis points over Treasuries.

U.S. Bancorp Investments, Inc., Barclays and Goldman Sachs & Co. were the bookrunners.

Bank of Nova Scotia reopened its 1.65% notes due 2019, which priced in June, to sell a $600 million add-on.

Landwirtschaftliche Rentenbank brought $1.5 billion of 10-year benchmark notes on Tuesday.

In the secondary market, Citigroup Inc.’s 4.125% subordinated notes due 2028 were quoted trading better early Tuesday at 255 bps offered in the secondary market, a source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on Monday at a spread of 258 bps over Treasuries.

Wells Fargo & Co.’s 2.1% notes due 2021 were seen 2 bps tighter in early secondary trading at 98 bps offered, according to a market source.

The company priced $3 billion of the notes on Monday at a spread of 100 bps over Treasuries.

The Markit CDX North American Investment Grade index closed 1 bp softer at a spread of 72 bps on Tuesday.

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