Morning Commentary: Investment-grade bonds spreads stable; eBay firms; EQT flat; Citi eases

By Cristal Cody

Tupelo, Miss., July 30 – Investment-grade bond spreads were unchanged early Wednesday as traders focused on the Federal Reserve’s monetary policy decision expected later in the session.

The Markit CDX North American Investment Grade series 22 index was flat over the morning after the index ended unchanged on Tuesday at a spread of 60 bps, a source said.

In the secondary market, EQT Midstream Partners LP’s 4% senior notes due 2024 traded unchanged, a market source said.

Citigroup Inc.’s 4% subordinated notes due 2024 widened 4 bps from issuance, according to a market source.

EQT steady

EQT Midstream Partners’ 4% notes due 2024 (BBB-/BBB-/ Ba1) traded unchanged at 159 bps bid, a source said early Wednesday.

The notes were quoted on Tuesday afternoon at 159 bps bid, 157 bps offered in aftermarket trading.

EQT Midstream Partners sold $500 million of the notes with a spread of Treasuries plus 160 bps on Tuesday.

The energy company is based in Pittsburgh.

Citigroup softer

Citigroup’s 4% notes due 2024 (Baa3/BBB+/A-) eased to 161 bps offered in the secondary market, a source said.

Citi sold $750 million of the 10-year notes at a spread of Treasuries plus 157 bps on Tuesday.

The financial services holding company is based in New York City.

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