Supply thins; American Honda prices $1.75 billion; Nordic Investment Bank plans deal

By Cristal Cody

Tupelo, Miss., July 11 – Primary action thinned on Wednesday with trade war fears in the forefront as the NATO summit kicked off amid additional proposed U.S. tariffs against China, market sources report.

American Honda Finance Corp. priced $1.75 billion of medium-term notes in three tranches as the sole reported high-grade issuer during the session.

Coming up on Thursday, Nordic Investment Bank plans to bring $1 billion of five-year global notes to the primary market.

Supply has been light over the past two weeks with no volume in the previous week and less than $5 billion of bond issuance in the prior week.

Corporate deal volume resumed Tuesday with new issues from Bank of Montreal, Toyota Motor Corp. and PacifiCorp.

Japan Bank for International Cooperation and the European Investment Bank also priced bonds.

On Monday, the Commonwealth Bank of Australia was the lone reported issuer with $1.25 billion of five-year covered bonds.

Syndicate sources expected about $15 billion to $20 billion of supply this week.

In the secondary market, bonds were mixed during the session.

Barclays plc’s 4.972% fixed-to-floating-rate notes due May 16, 2029 improved 2 bps on Thursday but traded more than 20 bps softer than issuance.

Walmart Inc.’s 3.7% notes due June 26, 2028 notes priced in June softened about 4 bps.

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