A decent issuance week with about $15.5 billion in investment grade supply hitting the market. Utilities and energy companies were once again at the fore with Burlington Resources, First Energy, and Indianapolis Power & Light among the borrowers. The U.S. Treasury's surprise decision to suspend the 30-year bond appears to be already having an effect on corporate bond issuance. The weighted average maturity of issuance on the week was 12.7 years, which is 3.4 years longer than the year-to-date average. There is likely to be continued extension out the curve by borrowers looking to lock in low all-in rates and to meet the incremental demand for paper created by the shortage of Treasury supply. Utilities and Energy companies, with their need to fund capex, are natural long end buyers. The high yield calendar also remains healthy with over $1 billion in paper priced; there was one deal in emerging markets as Panama tapped the '08s for $250 million.
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