Midday Commentary: High-grade bonds stable at open; Goldman Sachs 10-year paper eases

By Cristal Cody

Tupelo, Miss., April 14 - Investment-grade bond spreads were mostly stable in early trading on Monday after widening late in the previous week, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to a spread of 70 bps on Friday.

"While CDS spreads have edged wider recently, cash bond spreads have remained stable," RBC Capital Markets, LLC analysts said in a note on Monday. "The hardest hit sector last week was financials and spreads were 5 bps wider on the week on 10-year bonds."

Financial paper continued to trade flat to weaker in the secondary market on Monday, according to a market source.

Goldman Sachs Group Inc.'s paper was out about 3 bps, a source said.

Goldman eases

Goldman Sachs' 4% notes due 2024 traded 3 bps wider at 135 bps offered, a source said early Monday.

Goldman Sachs priced $3 billion of the 10-year notes (Baa1/A-/A) on Feb. 26 at a spread of 137.5 bps over Treasuries.

The financial services company is based in New York City.

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