DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Risk assets retreated and safe-haven investments reclaimed higher ground Monday as the latest negotiations in Greece stalled. But while investors who had been bullish on growth had some reason to pause, corporate borrowers found a receptive audience as they flooded the bond market. Aristotle Holding Inc., a unit of Express Scripts Inc. (ESRX), was the largest borrower as it sought investors for its $3.5 billion multi-tranche issue. But it was the $300 million deal of single-A-rated notes from Kimberly-Clark Corp. (KMB) that best exemplified how cheaply corporations can tap the market. The Dallas personal- care, consumer-tissue, health-care company paid 2.573% to borrow 10-year debt, reflecting a spread to Treasurys of just 68 basis points. The primary market was on track to digest nearly $7 billion of investment-grade supply Monday as a variety of issuers jumped into the market to take advantage of some of the lowest borrowing rates ever. Treasurys, meanwhile, were able to recover slightly after experiencing the worst single-day selloff since October in the wake up Friday's encouraging U.S. payrolls report. The yield on the benchmark 10-year Treasury note fell more than two basis points Monday to 1.90%, as demand for the bond suppressed its yield, but any rally was tempered by the pipeline of new supply coming later this week. The push to safe-havens hurt corporate bonds only in certain spots, and municipal bonds struggled a bit as well. But considering the depth of the rally in 2012, Monday was hardly a day of turnarounds. Treasurys Uncertainties over a bond-swap deal to avoid a disorderly default by Greece rode to the Treasury market's rescue on Monday. The price strength, following a big selloff at the end of last week, was the latest reminder that, with the euro zone's sovereign-debt crisis still unsettled, Treasury bonds continue to lure investors looking for a safe place to preserve capital even as yields trade near historical lows. "Lower equities, bottom fishing and the news an agreement still has not been reached on a Greek debt deal" all contributed to the rally in Treasury bonds, said Mary Ann Hurley, vice president of trading at D.A. Davidson & Co. in Seattle. So far, any selloff driven by uplifting U.S. economic releases including Friday's non-farm payrolls report has been short-lived. Traders said the tug of war between U.S. data and the euro zone's debt concerns will continue to keep bond yields in a tight--and low--range. The benchmark 10-year note's yield has been trapped between 1.8% and 2.1% since the start of November. In late-afternoon trade, the benchmark 10-year Treasury note was 13/32 higher to yield 1.903%. The 30-year bond was 17/32 higher to yield 3.121%. The two-year note was flat to yield 0.234%. Bond prices and yields move in opposite directions. The rally was somewhat tempered ahead of this week's $72 billion in new debt sales. The Treasury Department is scheduled to sell $32 billion in three-year notes on Tuesday, $24 billion in 10-year notes on Wednesday and $16 billion in 30-year bonds on Thursday. Investment-Grade Corporates February issuance continued at a rapid clip Monday as at least five high-grade borrowers took advantage of ultra-low borrowing rates in the U.S. credit markets. Monday's calendar included two major deals: A $3.5 billion offering from Aristotle Holding, and a $1.5 billion deal from Brasil Telecom SA (BTM, BRTO4.BR). Both were expected to price late Monday. It also featured $800 million deals from two Yankee bank borrowers: Sao Paulo's Banco Santander Brasil SA, and Deutsche Bank AG (DB, DBK.XE). Along with the $300 million Kimberly-Clark issue, $6.9 billion was supposed to price by day's end. And that doesn't include a $600 million deal of covered bonds from Montreal-based National Bank of Canada (NA.T), which sold 2.2% coupon bonds priced to yield 1.417%, or 67 basis points over Treasurys. Borrowers have been rushing to the market to take advantage of cheap financing resulting from the Federal Reserve's policy of keeping interest rates depressed through 2014. Appetite has broadened in recent weeks, based on encouraging growth data in the U.S. and less-burdensome headlines from Europe. Although the market tone weakened Monday on news that Greek negotiators have so far failed to agree on the specifics of austerity measures, which are necessary for the country to receive a second bailout package worth EUR130 billion ($170.6 billion), corporate bonds were fairly resilient. Markit's CDX North America Investment Grade Index, a measure of health in the U.S. corporate market, deteriorated only 0.5% in late afternoon trading. After last week's rally left the index as its best level since July, the index now stands at 94.8 basis points, the second-best level since July. Monday's new issues follow a massive start to February, with $20.2 billion of investment-grade bonds getting sold in the first three sessions of the month alone--roughly one-third the total for all of February 2011, according to Dealogic. Borrowers that came to market last week achieved record-low interest rates at the three-, five-, 10-, and 30-year maturities. McDonald's Corp. (MCD), for instance, sold 30-year bonds bearing an interest rate of 3.70%--the first-ever 30-year sale of dollar-denominated debt selling at less than 4%. Investors have been rewarded, too. Barclays' index of investment-grade bank bonds returned 4.34% year-to-date, as of Friday, and high-yield bank bonds returned a whopping 10.66%. Among Monday's new issues, yields were dropping in the marketing period and Deutsche Bank enlarged its deal by $100 million, indicating deep pockets of demand. Municipal Bonds The prices of top-rated municipal bonds were largely unchanged Monday, though debt maturing in the 10-year range showed some losses, according to a widely watched benchmark from Thomson Reuters Municipal Market data. Debt maturing between 2021 and 2022 saw yields rise two basis points, while debt maturing in 2023 saw yields rise one basis point, according to MMD. The municipal-bond market has largely rallied since the start of the year, as relatively low supply has helped to drive up prices. The market showed some losses across the curve on Friday, but some market participants remained optimistic that the market rally would ultimately continue. "It's just taking a breather here," Burton Mulford, portfolio manager at Eagle Asset Management, said Monday morning. "I really think that munis are the best asset class to be in if you're looking for income with preservation of principal as your No. 1 priority." In primary-market activity Monday, Tarrant Regional Water District, Dallas, Texas, lowered yields by three basis points on the 2052 maturity of a $150 million bond sale, suggesting good demand, according to a repricing wire from Ipreo. Shelby County, Tenn., held a retail order period for $264 million in general-obligation refunding bonds, as did Washington State University for a $73 million revenue-bond sale. Mortgages Wall Street dealers are teeing up about $1.8 billion in commercial real-estate bonds backed by just a single borrower in the coming weeks as their sales of traditional multi-loan deals have been slow out of the gates, according to investors. Trophy properties including the Fontainebleau Hotel in Miami Beach and the 9 West 57th Street office tower in midtown Manhattan top the collateral for the single-borrower issues that are often investor favorites for low debt relative to equity. For now, they are filling a void left by traditional "conduit" CMBS whose production was interrupted by volatile markets in late 2011. Single-borrower issues are often preferred by investors because they can better understand the credit versus other issues that aggregate dozens of loans from different real-estate sectors. Borrowers willing to bolster the issue with equity will also get sweeter terms than in a multi-loan "conduit." "The reality is you can probably get better execution" in a single-borrower deal, said Alan Todd, head of CMBS strategy at Bank of America Merrill Lynch. "There's a positive story with the borrower usually willing to put in equity. In pooling, the benefits and transparency of a single-borrower deal get diluted to some extent." UBS Securities is preparing the $600 million CMBS for the Fontainebleau Hotel, while Deutsche Bank will issue $625 million in bonds backed by a loan on 9 West 57th Street, according to investors who were briefed by dealers. J.P. Morgan Chase & Co. is planning an $80 million loan to help fund Silverstein Properties' 7 World Trade Center, one of the investors said. Bank of America Merrill Lynch and Deutsche Bank are planning to sell $500 million in commercial mortgage-backed securities backed by 261 properties run by OSI Restaurant Partners, known for Outback Steakhouse and Carrabba's Italian Grill franchises, according to a terms obtained by Dow Jones Newswires. The dealers intend to issue $175 million in mezzanine debt as early as this week, and follow with $325 million of senior debt in March, said an investor. -By Patrick McGee, Dow Jones Newswires; 212-416-2382; email@example.com --Min Zeng, Mike Cherney, and Al Yoon contributed to this article.