Morning Commentary: Investment-grade bonds mixed; Barclays firms; Ford Motor Credit softens

By Cristal Cody

Tupelo, Miss., Jan. 8 – High-grade bonds were mixed in early secondary trading on Friday, with new supply on tap for later in the session.

Barclays plc’s 4.375% notes due 2026 firmed 3 basis points in the secondary market.

Ford Motor Credit Co. LLC’s 4.389% notes due 2026 traded 4 bps weaker.

The three-month Libor yield was stable over the morning at 62 bps.

On Thursday, $13.5 billion of investment-grade issues were traded, down from $16.6 billion on Wednesday, according to Trace.

Barclays improves

Barclays’ 4.375% senior notes due 2026 firmed 3 bps to 214 bps bid in secondary trading, according to a market source.

Barclays sold $2.5 billion of the notes (Baa3/BBB/A) on Tuesday at a spread of Treasuries plus 220 bps.

The financial services company is based in London.

Ford Motor Credit eases

Ford Motor Credit’s 4.389% notes due 2026 eased 4 bps to 221 bps offered, a market source said.

The company sold $1.2 billion of the notes (Baa3/BBB-/BBB-) on Tuesday at 215 bps over Treasuries.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

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