Morning Commentary: Citigroup tightens; Newell Rubbermaid mixed; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., March 23 – Investment-grade bonds opened mixed in secondary trading on Wednesday as desks begin to thin ahead of the holiday weekend.

Citigroup Inc.’s 2.7% senior notes due 2021 that priced on Tuesday traded 5 basis points better over the morning.

Newell Rubbermaid Inc.’s senior notes (Baa3/BBB-/BBB-) were mixed in the secondary market.

The Markit CDX North American Investment Grade index opened unchanged at a spread of 80 bps.

The three-month Libor yield was steady at 62 bps.

High-grade secondary trading volume rose to $18.33 billion on Tuesday from $16.15 billion on Monday, according to Trace.

Citigroup firms

Citigroup’s 2.7% notes due 2021 traded early Wednesday at 128 bps offered in the secondary market, a source said.

Citigroup sold $1.5 billion of the notes (Baa1/BBB+/A) on Tuesday at a spread of Treasuries plus 133 bps.

The banking and financial services company is based in New York.

Newell Rubbermaid mixed

Newell Rubbermaid’s 4.2% notes due 2026 improved 2 bps from Tuesday to 200 bps offered, according to a market source.

The company sold $2 billion of the notes on Friday at 235 bps over Treasuries.

Newell Rubbermaid’s 5.5% bonds due 2046 eased 1 bp to 247 bps offered.

The long bonds priced in a $1.75 billion tranche on Friday at Treasuries plus 285 bps.

Newell Rubbermaid is a consumer and commercial products maker based in Atlanta.

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