Ontario prices; MUFG reopened notes firm; Citigroup, JPMorgan notes flat; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., April 20 – Goldman Sachs Group Inc. and Credit Agricole SA tapped the investment-grade bond market on Wednesday during an otherwise mostly quiet session.

Final pricing details for the transactions were not available by press time.

The Province of Ontario brought to market a $1 billion offering of 10-year bonds.

In the secondary market, Mitsubishi UFJ Financial Group, Inc.’s 3.85% notes due 2026 reopened on Tuesday traded 2 basis points better on Wednesday.

Citigroup Inc.’s 4.6% subordinated notes due 2026 were unchanged on the day.

JPMorgan Chase & Co.’s 3.3% senior notes due 2026 headed out flat.

The Markit CDX North American Investment Grade index tightened 3 bps to close at a spread of 73 bps.

Ontario prices $1 billion

Ontario sold $1 billion of 2.5% 10-year bonds at 99.631 to yield 2.542% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Aa2/A+/DBRS: AA) priced with a spread of 75.2 bps over Treasuries, or mid-swaps plus 88 bps.

BMO Capital Markets Corp., Deutsche Bank AG, London Branch, Goldman Sachs International and J.P. Morgan Securities plc were the lead managers.

MUFG firms

MUFG’s 3.85% notes due 2026 firmed 2 bps during the session to 153 bps bid, a market source said.

The bank sold $500 million in an add-on to the 10-year notes on Tuesday at a spread of Treasuries plus 155 bps.

MUFG originally priced $2.5 billion of the notes on Feb. 23 at Treasuries plus 215 bps.

The bank is based in Tokyo.

Citigroup unchanged

Citigroup's 4.6% subordinated notes due 2026 were unchanged on the day at 242 bps bid, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on March 1 at a spread of Treasuries plus 280 bps.

The banking and financial services company is based in New York.

JPMorgan stable

JPMorgan’s 3.3% notes due 2026 headed out flat at 140 bps bid in the secondary market, a source said.

JPMorgan sold $2.5 billion of the notes (A3/A-) on March 18 at a spread of 145 bps plus Treasuries.

The financial services company is based in New York City.

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