Morning Commentary: High-grade primary quiet amid bank meetings; S&P Global notes firm

By Cristal Cody

Eureka Springs, Ark., Sept. 20 – Investment-grade bond supply is expected to thin until after the conclusion of the monetary policy meetings from the Federal Reserve and Bank of Japan on Wednesday.

In the secondary market early Tuesday, bonds were mostly flat to modestly tighter.

S&P Global Inc.’s 2.95% senior notes due 2027 that priced on Monday traded about 2 basis points better than issuance.

Credit spreads widened early Tuesday.

The Markit CDX North American Investment Grade index opened about 5 bps softer at a spread of 80 bps.

The three-month Libor yield was unchanged at 86 bps on Tuesday.

Investment-grade secondary trading volume totaled $14.5 billion on Monday, according to Trace.

S&P Global firms

S&P Global’s 2.95% notes due 2027 firmed to 133 bps bid in secondary trading, according to a market source.

S&P Global (Baa1//BBB+) sold $500 million of the notes on Monday at a spread of 135 bps over Treasuries in a Rule 144A and Regulation S private placement transaction.

The notes are guaranteed by subsidiary Standard & Poor's Financial Services LLC.

New York-based S&P Global provides ratings, benchmarks, analytics and data to capital and commodity markets.

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