Morning Commentary: JPMorgan paper improves; CVS long bonds soft; CDX opens tighter

By Cristal Cody

Tupelo, Miss., July 20 – High-grade bonds were mixed in early secondary trading on Monday, market sources said.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 traded 1 basis point better.

CVS Health Corp.’s 5.125% senior notes due 2045 eased 2 bps.

The Markit CDX North American Investment Grade series 23 index opened the session 1 bp tighter at a spread of 65 bps.

“The spread on all cash bonds ended last week up 2.4 bps at 139 bps, driven by 3 bps widening in the energy sector,” RBC Capital Markets, LLC analysts said in a note on Monday. “All sectors widened by more than 2 bps on Friday.”

JPMorgan firms

JPMorgan Chase’s 3.9% notes due 2025 firmed 1 bp to 148 bps offered in secondary trading, according to a market source.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at Treasuries plus 155 bps.

The financial services company is based in New York City.

CVS eases

CVS Health’s 5.125% senior notes due 2045 were quoted 2 bps weaker in secondary trading at 179 bps offered, a market source said.

The company sold $3.5 billion of the bonds (Baa1/BBB+) on July 13 at a spread of Treasuries plus 190 bps.

The pharmacy retailer is based in Scarsdale, N.Y.

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