Morning Commentary: Pre-holiday investment-grade primary activity slows; Abbott bonds mixed

By Cristal Cody

Eureka Springs, Ark., Nov. 22 – Primary action slowed in the high-grade bond market early Tuesday, though some additional issuance is likely ahead of the Thanksgiving Day holiday, according to sources.

The bond markets will be closed on Thursday and will close early on Friday.

Investment-grade issuers priced $6 billion of bonds during Monday’s session.

Market sources forecast about $5 billion to $10 billion of volume for the week.

In the secondary market, Abbott Laboratories’ new senior notes were mixed, with the tranche of 3.75% notes due 2026 softer.

The three-month Libor yield was unchanged at 92 basis points early Tuesday.

On Monday, $16.49 billion of investment-grade issues were traded, according to Trace.

Abbott 10-year notes ease

Abbott Laboratories’ 3.75% notes due 2026 eased about 5 bps to 154 bps offered in the secondary market, a source said.

Abbott Laboratories sold $3 billion of the notes (Baa3/A+) on Thursday at a spread of 155 bps over Treasuries.

The pharmaceutical health care products company is based in Abbott Park, Ill.

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