May 12, 2009 (Action Economics) --

U.S. corporate debt: Lloyd's launched its $3 bln 2-trancher that will be comprised of a $2.5 bln 3-year and a $500 mln 2-year backed by UK government guarantees. Illinois State also has launched a $500 mln 2-trancher of $400 mln 30-year bonds and $100 mln 20-year notes, while Sempra Energy has a $400 mln 7-year, EQT corp has a $500 mln 10-year, Canadian Pacific Railway has a $300 mln 10-year and Ameren is prepping a $425 mln 5-year. In the high yield sector, Ameristar has a $500 mln 5-year, Calpine has an $800 mln 7-year and Linn Energy has a $200 mln 8-year. Look for any hedge locks and unwinds on the larger deals to contribute to intraday volatility on underlying Treasuries.