Investment-grade primary quiet ahead of long weekend; funds see $6.89 billion inflows

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 10 – The high-grade bond market was empty of new issuance on Friday ahead of the extended Columbus Day-holiday weekend.

The quiet session kept the week’s total issuance at $16.5 billion, falling in line with what was predicted to be a $15 billion to $20 billion week.

Meanwhile, the week saw another staggering amount of cash flowing into investment-grade bond funds, with Lipper reporting net inflows of $6.89 billion for the week.

This follows last week’s inflows of $3.13 billion, bringing the year-to-date total to more than $65 billion.

Looking forward, the primary is expected to remain relatively subdued for the shortened week ahead.

With earnings season underway and the majority of potential corporate issuers sitting on the sidelines, financial names will likely make up the bulk of next week’s supply.

“We’re expecting around $15 [billion],” one market source said.

Bonds were mixed over the session, according to market sources.

Wal-Mart Stores Inc.’s 3.3% notes due 2024 that reopened on Tuesday headed out unchanged over the past two sessions, according to a market source.

Telecom bonds have been active over the week but traded mostly weaker, a source said.

AT&T Inc.’s 4.8% bonds due 2044 ended 5 basis points wider.

Verizon Communications Inc.’s 6.35% notes due 2019 eased 5 bps in secondary trading, a source said.

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