Morning Commentary: Crown Castle notes tighten; Citigroup softens; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., April 28 – New investment-grade bonds priced over the week traded mixed in the secondary market early Thursday.

Crown Castle International Corp.’s 3.7% senior notes due 2026 that priced on Tuesday traded about 3 basis points tighter than issuance.

Citigroup Inc.’s new 3.4% notes due 2026 traded 1 bp softer in the secondary market.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 75 bps at the start of the day.

The three-month Libor yield was unchanged at 63 bps.

Secondary trading volume edged up to $18.84 billion on Wednesday from $18.69 billion on Tuesday, according to Trace.

Crown Castle improves

Crown Castle International’s 3.7% senior notes due 2026 were seen about 3 bps tighter early Thursday, a market source said.

Crown Castle sold $750 million of the 10-year notes (Baa3/BBB-) on Tuesday at a spread of 180 bps over Treasuries.

Houston-based Crown Castle provides infrastructures for wireless carriers.

Citigroup eases

Citigroup’s 3.4% notes due 2026 eased 1 bp to 151 bps offered in secondary trading, according to a market source.

Citigroup sold $2 billion of the 10-year notes (Baa1/BBB+/A) on Tuesday at a spread of Treasuries plus 150 bps.

Citigroup is a New York-based financial services company.

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