Morning Commentary: High-grade bonds trade mixed; BP tightens; Crown Castle paper widens

By Cristal Cody

Eureka Springs, Ark., April 29 – Investment-grade bonds traded mixed early Friday ahead of an expected busy primary session.

High-grade issuers including Ford Motor Credit Co. LLC and Texas Instruments Inc. plan to tap the market over the day.

In the secondary market, BP Capital Markets plc’s 3.119% notes due 2026 that priced on Thursday tightened 5 basis points.

Crown Castle International Corp.’s 3.7% senior notes due 2026 placed earlier in the week traded 6 bps weaker.

The Markit CDX North American Investment Grade series 23 index opened the day about 1 bp softer at a spread of 77 bps.

The three-month Libor yield rose 1 bp to 64 bps on Friday.

Secondary trading volume dropped to $16.55 billion on Thursday, compared to $18.84 billion of bonds traded on Wednesday, $18.69 billion on Tuesday and $15.2 billion on Monday, according to Trace.

BP tightens

BP Capital Markets’ 3.119% notes due 2026 traded 5 bps better than issuance at 125 bps offered, according to a market source early Friday.

The company sold $1.25 billion of the notes (A2/A-) on Thursday at a spread of 130 bps over Treasuries.

BP Capital Markets is a financing arm of London-based oil and gas company BP plc.

Crown Castle eases

Crown Castle International’s 3.7% senior notes due 2026 eased 6 bps to 172 bps offered in the secondary market, a source said.

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

The Houston-based company provides infrastructures for wireless carriers.

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