The low interest rate magnet continued to attract issuers yesterday, and syndicate desk and other sources see little end in sight.

"I don't know where this slows down," a source who tracks new issues said. "At a certain point the Street has to get nervous about inventory levels." .

Asked about a possible logjam, one syndicate official said, "That will probably happen, but that doesn't mean people aren't going to continue to issue." Yesterday's spate of new paper contained some "oddball" names that cleaned up quicker than some of Wednesday's more frequent visitors to the new-issue market, one trader said.

Some Wednesday issues were still available yesterday, but got help from an afternoon bond market rally, he said. He declined to say which issues were having trouble.

Big deals said to be in the hopper include a $1.5 billion global offering by the Province of Ontario through Merrill Lynch & Co. and Goldman, Sachs & Co. as co-lead managers. Also expected is a three-part $750 million Grand Metropolitan Investment Corp. deal through Goldman Sachs.

The Grand Metropolitan offering was scheduled for pricing late yesterday or today. The deal could go as high as $1 billion, a source outside Goldman said. Another source heard the Ontario deal could reach 2 billion.

"There's still a lot of business," another syndicate desk member said, adding that the deals are selling but that buyers are "picking and choosing.'

One buyside source said among deals issued in the past three days, she liked pricing on deals by the Province of Manitoba and PaineWebber Group Inc.

"Other than that, I think they've been a little skinny," the source said.

While the deals are being priced on the tight side, they are five to 10 basis points too tight rather than 20, she said.

"Most of the deals are probably coming a little too pricey, and a lot are still available," a trader added.

" Nothing much " happened in the high-grade bond market yesterday, which finished mostly unchanged, the trader said.

"We're watching all these new deals coming up." a trader said.

High-yield bonds ended mixed with senior pieces of the capital structures significantly outperforming subordinated tiers. Some Stone Container Corp. bonds lost about three points, one trader said.

New issues

Morgan Bank Delaware issued $250 million of 3.150% bank notes due 1993. The noncallable notes were priced initially at par. Moody's Investors Service and Standard & Poor's Corp. rate the notes triple-A. Goldman, Sachs & Co. lead managed the offering.

CSX Corp. issued a two-part offering totaling $250 million. The first tranche consisted of $ 100 million of 7% notes due 2002. The noncallable notes were priced at 99.644 to yield 7.050% or 75 basis points over comparable Treasuries.

The second part consisted of $150 million of 8.1% debentures due 2022. The noncallable debentures were priced at 99.552 to yield 8.14% or 90 basis points over comparable Treasuries. Moody's rates the offering A3, while Standard & Poor's rates it BBB. First Boston Corp. lead managed the offering.

Duke Power issued $200 million of 7% first and refunding mortgage bonds due 2005. Noncallable for five years, the bonds were priced at 99.264 to yield 7.087% or 75 basis points over 10-year Treasuries. Moody's rates the offering Aa2, while Standard & Poor's rates it AA-minus. A group led by First Boston won competitive bidding to underwrite the offering.

Masco Corp. issued $200 million of 6.625% notes due 1999. The noncallable notes were priced at 99.50 to yield 6.716% or 90 basis points over comparable treasuries. Moody's rates the offering Baal, while Standard & Poor's rates it BBB-plus. Salomon Brothers lead managed the offering.

Heller Financial issued $200 million of floating-rate notes due 1994 at par. The notes float quarterly at 45 basis points over the three-month London Interbank Offered Rate. Goldman Sachs lead managed the offering.

Deutsche Bank Financial issued $150 million of 3.15% medium-term notes due 1993. Callable after three years, the notes were priced initially at par. Moody's and Standard & Poor's rate the offering triple-A. First Boston managed the offering.

Western Publishing Group issued $150 million of 7.650% senior notes due 2002. The noncallable notes were priced at 99.861 to yield 7.67% or 135 basis points over comparable Treasuries. Moody's rates the offering Baa3, while Standard & Poor's rates it BBB-minus. Bear, Steams & Co. lead managed the offering.

Pittsburgh National Bank issued $100 million of 3.2% bank notes due 1993 at par. The noncallable notes were rated Aa3 by Moody's and A-plus by Kidder, Peabody & Co.

International Lease Finance Corp. issued $100 million of 4.875% notes due 1995. The noncallable notes were priced initially at 99.695 to yield 4.986% to yield 63 basis points over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A-plus. Morgan Stanley & Co. lead managed the offering

Boston Edison issued $60 million of 8.250% debentures due 2022. Noncallable for 10 years, the debentures were priced at 99.318 to yield 8.312% or 105 basis points over comparable Treasuries. Moody's rates the offering Baa2, while Standard & Poor's rates it BBB-minus. Goldman Sachs lead managed the offering.

KN Energy issued $35 million of 8.350% debentures due 2022 at par. Noncallable for 10 years, the debentures were priced to yield 110 basis points over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A. Merrill Lynch managed the offering.

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