Morning Commentary: Mylan notes tighten; Pfizer paper mixed; Libor yield rises 2 bps

By Cristal Cody

Eureka Springs, Ark., June 2 – The high-grade primary market is set for another strong day of issuance, while new investment-grade bonds traded flat to tighter in the secondary market at the start of Thursday’s session.

Aetna Inc. plans to price an eight-part offering of notes on Thursday.

In the secondary market, Mylan NV’s $6.5 billion senior notes (Baa3/BBB-/BBB-) that priced in four tranches on Tuesday traded about 3 basis points to 9 bps tighter.

Pfizer Inc.’s $5.6 billion notes (A1/AA/A+) placed in five parts on Tuesday traded mostly flat to about 6 bps better in the secondary market.

The Markit CDX North American Investment Grade index opened the day mostly unchanged at a spread of 78 bps.

The three-month Libor yield rose 2 bps to 69 bps on Thursday.

High-grade secondary trading volume climbed to $17.17 billion on Wednesday from about $16.8 billion on Tuesday, according to Trace.

Mylan tightens

Mylan’s 3.15% notes due 2021 traded at 173 bps offered early Thursday, according to a market source.

The notes priced on Tuesday in a $2.25 billion tranche at Treasuries plus 180 bps.

The company’s 3.95% notes due 2026 were quoted at 217 bps offered in secondary trading on Thursday.

Mylan sold $2.25 billion of the 10-year notes in Tuesday’s sale at Treasuries plus 220 bps.

The global pharmaceutical company is based in Hatfield, England.

Pfizer mixed

Pfizer’s 1.95% notes due 2021 were unchanged in the secondary market at 60 bps offered, a source said.

The company sold $1.15 billion of the notes on Tuesday at Treasuries plus 60 bps.

Pfizer’s 2.75% notes due 2026 tightened to 84 bps offered in secondary trading early Thursday.

The notes priced in a $1.25 billion tranche on Tuesday at 90 bps over Treasuries.

Pfizer is a biopharmaceutical company based in New York.

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