Hewlett Packard Co. (HPQ) is tapping the investment-grade bond market with a fixed rate three-part benchmark note, according to a person familiar with the matter.

The bond comes a day after the high-grade market saw more than $10 billion in new issues on Tuesday. Issuers included Dell Inc. (DELL), Home Depot Inc. (HD) and other top-rated companies.

Companies took advantage of low interest rates because investors have had few savory alternatives: Stock market volatility spiked on renewed concern about the health of Europe's biggest banks and yields on money markets and government debt are at record lows.

"There could be a lot of new deals again," said Scott MacDonald, head of research at Aladdin Capital Holdings, noting "the longer issuers wait, the landscape to issue into gets more complicated."

With problems in Europe and the weak economy, "a myriad of issues could roil the market."

Tuesday was especially busy because this week--the first after the unofficial end of summer--includes two holidays: Labor Day on Monday and Rosh Hashanah, the Jewish New Year, starting Wednesday at sundown.

Hewlett Packard's bond, with its 2-, 3- and 5-year tranches, is scheduled to price later Wednesday.

Another issuer is Unum Group (UNM) of Chattanooga, Tenn., with a $300 million 10-year unsecured note issue. Morgan Stanley and UBS AG are the bookrunners. The company, a provider of employee benefits in the U.S. and U.K., will use the money to repay maturing senior notes and for other corporate purposes.

Duquesne Light Holdings Inc. (DQE) is tapping the market with a $300 million 10-year note offered via the private 144a market. The bond is rated Ba1/BBB- and is scheduled to price Wednesday. Joint leads are Barclays, Bank of America Merrill Lynch and Scotia Bank.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com

(Prabha Natarajan contributed to this report)
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