High-grade primary action quiets as focus turns to Fed; Vodafone, Moller-Maersk improve

By Cristal Cody

Tupelo, Miss., June 19 – The investment-grade primary market stayed quiet over Wednesday’s session with no reported issuers pricing bonds.

The Federal Reserve on Wednesday refrained from any interest rate changes following its two-day monetary policy meeting.

The Fed said in a press release following the Federal Open Market Committee meeting that it would leave the target range for the federal funds rate at 2.25% to 2.5%.

“The committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the committee's symmetric 2% objective as the most likely outcomes, but uncertainties about this outlook have increased,” the FOMC release said.

Vodafone Group plc announced on Wednesday that it closed on its $2.25 billion two-tranche registered offering of notes (Baa2/BBB+/BBB+) that priced a week ago.

The company’s notes are trading higher in price than issuance.

A.P. Moller-Mærsk A/S’ 4.5% notes due June 20, 2029 priced on Monday firmed to the 245 bps area.

The Copenhagen, Denmark-based integrated container shipping company (Baa3/BBB) sold $500 million of the notes at a Treasuries plus 250 bps spread.

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