CVS Among 14 Firms to Storm High-Grade Market Before CPI Report

(Bloomberg) -- CVS Health Corp. and a unit of Chevron Corp. are among 14 firms offering US investment-grade bonds Monday, the most in three months, a day before heavily anticipated consumer-price data is due for release.

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The deals follow $40.4 billion of high-grade issuance last week, also the highest since May, as average yields for investment-grade corporates reached their lowest level of 2025 and premiums are near their tightest in a quarter-century. Selling debt now avoids potential interest-rate volatility following Tuesday’s consumer-price report.

Chevron USA Inc. is marketing bonds in as many as seven tranches, six months after completing a similar deal that raised $5.5 billion.

Meanwhile, CVS is holding its first investment-grade sale of 2025. Proceeds will in part repay existing debt, according to a person familiar with the matter. The longest portion of the four-part transaction is a 40-year security that may yield 1.7 percentage points above Treasuries, said the person, who asked not to be identified as the details are private. The company sold $3 billion of hybrid bonds last December and $5 billion of notes in May 2024.

Wall Street syndicate desks had projected $40 billion to $45 billion of high-grade bond sales for this week. Activity should “remain healthy” until the typical late-August lull occurs, said Kyle Stegemeyer, head of investment-grade debt capital markets and syndicate at U.S. Bank.

Bloomberg Economics expects consumer-price data for July to show inflation having accelerated from previous months, with price gains in core goods and services both anticipated to have picked up. The reports for July and August will be key for the Federal Reserve’s next policy meeting in September, when the first interest rate cut of 2025 could occur.

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