Goldman Sachs Group Inc., Wells Fargo & Co. andColgate-Palmolive Co. sold bonds as yields on highly ratedcorporate debt fell to record lows.

Goldman Sachs, the fifth-biggest U.S. bank by assets, issued $2billion of 3.3 percent, three-year notes, while San Francisco-basedWells Fargo issued $1.5 billion of 2.1 percent, five-yearsecurities, according to data compiled by Bloomberg. Colgate, theworld's largest toothpaste maker, sold $500 million of 2.3 percent,10-year notes.

The companies are raising money in the bond market after yieldson U.S. investment-grade debt fell to 3.37 percent on April 27, thelowest ever and down from 3.9 percent at the beginning of the year,according to Bank of America Merrill Lynch index data.

Bank bonds have returned 6.1 percent this year through April 27,beating the 3.6 percent average gain for all investment-grade debt,as Europe's sovereign debt crisis eased, Bank of America MerrillLynch index data show. While spreads on the financial debt fell to268 basis points on April 27, that's almost 1 percentage pointabove last year's low of 173 in April.

Credit-default swaps on Goldman Sachs have fallen to 269 basispoints as of 3:48 p.m. today from 327 basis points at the beginningof the year, Bloomberg data show. Contracts on Wells Fargo cost 88,down from 144 on Jan. 2.

The contracts, which typically fall as investor confidenceimproves and rise as it deteriorates, pay the buyer face value if aborrower fails to meet its obligations, less the value of thedefaulted debt.

The Goldman Sachs bonds priced to yield 295 basis points morethan similar-maturity Treasuries, and the Wells Fargo notes wereissued at a 130 basis-point premium, Bloomberg data show. Colgateissued its debt at a spread of 58. A basis point is 0.01 percentagepoint.

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