Morning Commentary: High-grade bonds mixed; Wells Fargo modestly better; Walgreens flat

By Cristal Cody

Tupelo, Miss., April 16 – High-grade bonds were mixed in early trading on Thursday with market participants focused on economic data reports, sources said.

Wells Fargo & Co.’s 3% senior notes due 2025 traded about 1 basis point tighter.

Walgreens Boots Alliance Inc.’s 3.8% senior notes due 2024 have softened over the week but traded flat early Thursday.

The three-month Libor yield was stable at 28 bps.

The Markit CDX North American Investment Grade series 23 index closed on Wednesday 1 bp tighter at a spread of 61 bps.

In data released on Thursday, the Labor Department reported initial unemployment claims for the previous week rose 12,000 to 294,000, higher than the 280,000 forecast.

Wells Fargo better

Wells Fargo’s 3% senior notes due 2025 improved about 1 bp to 102 bps offered, a market source said early Thursday.

Wells Fargo sold $2.5 billion of the notes (A2/A+/AA-) at Treasuries plus 107 bps on Feb. 11.

The bank is based in San Francisco.

Walgreens flat

Walgreens Boots Alliance’s 3.8% notes due 2024 were unchanged at 140 bps offered in secondary trading, according to a market source.

The company sold $2 billion of the notes (Baa2/BBB/) at Treasuries plus 145 bps on Nov. 6.

Walgreens Boots Alliance is a subsidiary of Deerfield, Ill.-based drugstore operator Walgreen Co.

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