Morning Commentary: Market focuses on data; Citigroup stable; secondary trading volume strong

By Cristal Cody

Eureka Springs, Ark., Dec. 2 – Valero Energy Partners LP is marketing new high-grade 10-year senior notes, while otherwise activity was mostly quiet early Friday with traders focused on economic data, including the Labor Department’s November jobs report.

The unemployment rate dropped in November from 4.9% to 4.6%, the lowest since 2007, a source said. Total non-farm payroll employment rose 178,000 for the month, slightly below analysts’ forecasts of 180,000 jobs.

In the secondary market, Citigroup, Inc.’s new 2.9% notes due 2021 that priced in the previous session traded wrapped around issuance.

The three-month Libor yield was steady at 93 basis points over the morning, a source said.

Secondary trading volume has been strong over the past two sessions, according to Trace. On Thursday, $23.27 billion of high-grade issues were traded.

On Wednesday, secondary trading volume totaled $25.2 billion, up from $18.4 billion on Tuesday and $16.88 billion on Monday.

Citigroup unchanged

Citigroup’s 2.9% notes due 2021 were unchanged in the secondary market in the 105 bps area, according to a market source.

Citigroup priced $2.25 billion of the five-year notes (Baa1/BBB+/A) on Thursday at a spread of 105 bps over Treasuries.

The financial services company is based in New York.

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