Citigroup and Wells Fargo Sell Investment-Grade Bonds After Fed Rate Hike

Two major banks tapping the investment-grade market right after a Fed hike suggests funding conditions remain open even as policy tightens, and that issuers are willing to pay up before the rate path steepens further. The timing matters for other financial issuers weighing their own windows, since heavy supply from Citigroup and Wells Fargo can absorb demand that might otherwise go to smaller borrowers. Whether the Fed's signal of additional increases later this year compresses new-issue spreads, or whether supply simply clears at wider levels, is the open question.