The $3 billion to $4 billion of demand investors lavished on the province of Ontario's $2 billion U.S. dollar global bond offering failed to convince the province to increase it yesterday.

The first such offering by a Canadian issuer, the deal marks the start of the province's global U.S. dollar bond program, according to Ron Otsuki, assistant director of the province's Capital Markets Branch.

The province decided before launching the deal Tuesday that it would stick to the $2 billion size, Mr. Otsuki said.

"We wanted to show investors what they were getting," Mr. Otsuki said. "It just [reduces] the uncertainty for them."

The Canadian province issued $2 billion of 7.75% bonds due 2002. The noncallable bonds were priced at 99.486 to yield 7.825% or 64 basis points over comparable Treasuries. Moody's Investors Service rates the offering Aa2, while Standard & Poor's Corp. rates it AA. J.P. Morgan Securities Inc. and Salomon Brothers Inc. managed the offering.

The province sold its bonds in Canada, the United States, Europe, and the Far East, Mr. Otsuki said. Though a breakdown of buyers was unavailable yesterday, Mr. Otsuki said North American investors purchased most of the bonds. Most demand came from North America, but the deal was widely distributed, he noted.

The province has an extensive investor relations program, and investor surveys helped shape the deal, he said.

"We found that what investors wanted was large liquid issues," he said.

Ontario's strategy is to offer large deals infrequently, he said.

"One of the things we worry about is coming to the market too frequently," Mr. Otsuki said. When investors see the same name too often, "They get turned off to the credit."

The market will dictate when the province issues again.

"We don't come because we need to, we come when the market is ready," he said. "We monitor all major global markets."

Ontario will use proceeds from yesterday's $2 billion deal for operations, capital improvements, and debt reduction, he explained.

Yesterday's Market

In secondary trading yesterday, high-grade bond prices tracked Treasuries, which finished 1/4 to 1/2 point lower. High-yield bonds overall ended 1/4 to 1/2 point higher. Some Charter Medical Corp. bonds proved an exception, losing 1/4 to 3/8 point.

Including Ontario's deal, yesterday's new issues totaled over $3.9 billion.

Other issues included: American Standard Inc. issued a two-part offering totaling $400 million. The first tranche consisted of $150 million of 10.875% senior notes due 1999. The noncallable notes were priced at par.

The second piece consists of $250 million of 11.375% senior debentures due 2004 at par. The notes are callable after five years at 105.688 and moving to par in 2002. The debentures tranche was increased from $150 million. First Boston Corp. and BT Securities managed the offering.

Archer Daniels Midland issued $300 million of 8.125% debentures due 2012. The noncallable debentures were priced at 99.267 to yield 8.20% or 43 basis points over 30-year Treasuries. Moody's rates the offering Aa2, while Standard & Poor's rates it AA-minus. Stephens Inc. managed the offering.

Commonwealth Edison issued a two-part first mortage bond offering totaling $243 million. Tranche A consisted of $103 million of bonds due 1995. The noncallable bonds were priced at 99.70 to yield 6.236% or 57 basis points over comparable Treasuries. Tranche B consisted of $140 million of 8% bonds due 2008. The noncallable bonds were priced at 99.11 to yield 8.10% or 85 basis points over comparable Treasuries. Moody's rates the offering A3, while Standard & Poor's rates it A-minus. Salomon Brothers lead managed the offering.

New Jersey Bell Telephone issued $200 million of 8% debentures due 2022. The noncallable debentures were priced at 98.834 to yield 8.104% or 33 basis points over comparable Treasuries. Moody's and Standard & Poor's rate the offering triple-A. Goldman, Sachs & Co. lead managed the offering.

Federal Farm Credit Banks issued $120 million of 5.60% notes due 1995. Noncallable for a year, the notes were priced at 99.85 to yield 5.655% or 10 basis points over comparable Treasuries. Merrill Lynch & Co. managed the offering.

New Jersey Bell issued $100 million of 7.25% debentures due 2002. The noncallable debentures were priced at 98.815 to yield 7.42% or 20 basis points over comparable Treasuries. Both Moody's and Standard & Poor's rate the offering triple-A. Salomon Brothers Inc. lead managed the offering.

African Development Bank issued $100 million of 7.70% subordinated medium-term notes due 2002. The noncallable notes were priced at 99.916 to yield 7.71% or 49 basis points over comparable Treasuries. Moody's rates the offering Aa1, while Standard & Poor's rates it AA. Goldman Sachs sole managed the offering.

Central Illinois Public Service issued a two-part first mortage bond offering totaling $83 million. The first tranche consisted of $50 million of 7.125% bonds due 1999. The noncallable bonds were priced at 99.666 to yield 7.186% or 34 basis points over comparable Treasuries. The second consists of $33 million of 8.5% bonds due 2022 at par. Noncallable for five years, the bonds were priced to yield 74 basis points over comparable Treasuries. Moody's rates the offering Aa1, while Standard & Poor's rates it AA-plus. Morgan Stanley & Co. lead managed the offering.

Federal Farm Credit Banks issued $75 million of 5% medium-term notes due 1994. The noncallable notes were priced at 99.871 to yield 5.075% or two basis points over comparable Treasuries. Merrill Lynch managed the offering.

Federal Farm Credit Banks issued $60 million of 6.65% notes due 1997. Noncallable for a year, the notes were priced at 99.891 to yield 6.693% or 18.5 basis points over comparable Treasuries. Merrill Lynch managed the offering.

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