Morning Commentary: Credit Suisse tightens; Citigroup steady; Exxon Mobil improves

By Cristal Cody

Tupelo, Miss., March 30 – High-grade bonds traded mostly better early Monday while credit spreads were flat to wider as market participants focused on the release of February economic data reports, sources said.

Credit Suisse Group Funding (Guernsey) Ltd.’s 3.75% senior notes due 2025 that were brought a week ago firmed 3 basis points.

Citigroup Inc.’s 3.875% subordinated notes due 2025 that priced in March were unchanged from issuance.

Exxon Mobil Corp.’s 2.709% notes due 2025 traded about 1 bp tighter from Friday.

Three-month Libor yield eased 1 bp to 28 bps on Monday, a source said.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 65 bps.

Credit Suisse firms

Credit Suisse Group Funding’s 3.75% notes due 2025 tightened 3 bps to 173 bps offered in secondary trading, a source said.

The company sold $2.5 billion of the notes (A2/ BBB+/A) on March 23 at Treasuries plus 187.5 bps.

Credit Suisse Group Funding is a financial services company based in Zurich.

Citigroup steady

Citigroup’s 3.875% subordinated notes due 2025 (Baa3/BBB+/A-) were unchanged from issuance at 193 bps offered, a market source said.

Citigroup sold $1 billion of the notes on March 19 at a spread of Treasuries plus 193 bps.

The financial services provider is based in New York.

Exxon Mobil improves

Exxon Mobil’s 2.709% notes due 2025 traded about 1 bp tighter at 67 bps offered early Monday, according to a market source.

The issue traded on Friday afternoon unchanged at 70 bps bid.

Exxon Mobil sold $1.75 billion of the notes (Aaa/AAA/) on March 3 at Treasuries plus 58 bps.

The oil and gas company is based in Irving, Texas.

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