Bond Sales Doubled in U.S. This Week

Companies sell almost $40 bln in debt; spreads tightest in 17 months.

Sales of corporate bonds in the U.S. doubled this week as relative yields narrowed to the tightest level in more than 17 months.

Xstrata Plc, the world’s largest exporter of coal burned by power stations, and New York-based JPMorgan Chase & Co. led at least $39.4 billion of new issues following $19.6 billion in the period ended Oct. 12, according to data compiled by Bloomberg. Sales compare with a 2012 weekly average of $27.8 billion

Xstrata, HCA

Xstrata, the target of a takeover bid by Glencore International Plc, issued $1.25 billion of 1.8 percent, three-year notes to yield 140 basis points more than similar-maturity Treasuries; $1.75 billion of 2.45 percent, five-year debt at a spread of 170 basis points; $1 billion of 4 percent, 10-year securities at 220 basis points and $500 million of 5.3 percent, 30-year debentures at 235 basis points, Bloomberg data show.

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