WASHINGTON, May 7 (Reuters) - Coca Cola on Monday

priced a 30-year and 40-year tranche as part of its new

investment-grade rated corporate bond at the tightest levels in

years, as investors demonstrated relentless demand for current

yields.

The global beverage supplier priced 10-year, 30-year and

40-year bonds as part of a $3 billion multi-tranche offering.

The bonds priced with spreads 55 basis points, 70 bps and 80 bps

over their corresponding U.S. Treasuries.

The spreads on the 10-year and 30-year were the

second-lowest since 2022, according to data from Credit Flow

Research.

The 10-year's spread was the fourth-narrowest ever,

behind a series of issuances by Procter & Gamble ( PG ) , while

the 40-year's spread was the second-tightest since 2009, behind

Eli Lilly's ( LLY ) deal this February.

Monday's primary activity was the second-most active day

since mid-February, according to a JPMorgan research report.

Fourteen borrowers raised a total $13.6 billion in the

heaviest day for the investment-grade primary market by deal

count since March 11's 16-deal tally, according to a Tuesday BMO

report. It is tied for the fourth most in a single day for 2024,

the report added.

Current spreads are the narrowest for the investment-grade

index observed since September 2021, according to the BMO

report. This is just two basis points off the lowest levels

since the financial crisis in 2008, the report noted.

Average investment-grade bond spreads currently sit at 88

basis points, according to the ICE BofA U.S. Corporate Index.

Investment-grade bond spreads are tightening as investor

demand remains elevated to lock in the current yields before

they go away if the Federal Reserve cuts rates.

These bonds were on average paying a yield of 5.55%, just 23

bps down from a 2024 peak of 5.78% reached on April 16, which is

the highest since Nov. 27 last year.

Order books for Monday's deals were an average 4.5x

oversubscribed, the largest average order book coverage on a day

with fourteen borrowers since March 2022, BMO wrote in its

report.