Corporate bond sales declined at the fastest pace in three months and relative yields climbed as concern that Greece would exit the euro and accelerate the European financial crisis lowered risk appetite in the U.S.
Kellogg Co., the Battle Creek, Michigan-based cereal maker, raised $1.45 billion in a three-part issue at its lowest coupons on record, according to data compiled by Bloomberg. Canada’s Inmet Mining Corp. sold $1.5 billion of bonds in its first U.S. offering.
The extra yield investors demanded to own corporate bonds instead of similar-maturity Treasuries increased to 304 basis points, the highest since Feb. 3, and an 18 basis-point rise from May 11, the data show.
Inmet, the Toronto-based developer of the $6.2 billion Cobre Panama copper mine, increased its debut offering by 50 percent to $1.5 billion, the largest high-yield offering of the week. The 8.75 percent, eight-year bonds priced to yield 763 basis points more than similar-maturity Treasuries, the data show.