Morning Commentary: MUFG notes tighten; Goldman Sachs improves; Libor yield rises

By Cristal Cody

Tupelo, Miss., Feb. 25 – High-grade bonds opened Thursday’s session mixed with new issues trading mostly tighter in the secondary market.

Mitsubishi UFJ Financial Group, Inc.’s senior notes (A1/A) that priced on Tuesday traded more than 10 basis points better than issuance.

Goldman Sachs Group Inc.’s new 3.75% senior notes due 2026 firmed 3 bps in secondary trading.

The Markit CDX North American Investment Grade index was unchanged to slightly tighter at a spread of 115 bps at the start of the day.

The three-month Libor yield opened 1 bp higher at 63 bps on Thursday.

In the previous session, $20.49 billion of investment-grade issues were traded, up from $18.34 billion of bonds traded on Tuesday, according to Trace.

MUFG trades

MUFG’s 3.85% notes due 2026 traded tighter at 202 bps offered in the secondary market, a source said.

The company priced $2.5 billion of the notes in a $5 billion three-tranche offering on Tuesday at a spread of Treasuries plus 215 bps.

The financial services company is based in Tokyo.

Goldman firms

Goldman Sachs Group’s 3.75% notes due 2026 traded 3 bps better early Thursday at 195 bps offered, according to a market source.

Goldman sold $1.75 billion of the notes (A3/BBB+/A) on Monday at a spread of Treasuries plus 203 bps. Goldman brought a total of $3.6 billion of notes in three tranches in Monday’s sale.

The financial services company is based in New York City.

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