Morning Commentary: High-grade primary market opens quiet; IBM notes mixed in early trading

By Cristal Cody

Eureka Springs, Ark., Jan. 26 – High-grade bond market action was fairly quiet at the start of Thursday’s session following more than $8 billion of deal volume on Wednesday.

The three-month Libor yield fell 1 basis point to 1.03% on Thursday, a source said.

In the secondary market, International Business Machines Corp.’s senior notes (Aa3/AA-/A+) that priced on Tuesday were mixed, with the 10-year notes softer in early trading.

Secondary trading climbed to $23.04 billion on Wednesday, up from $19.07 billion on Tuesday, according to Trace.

IBM mixed

IBM’s 2.5% notes due 2022 traded better early Thursday at 100.20 compared to where the notes last traded on Wednesday at 99.98, according to a market source.

The company sold $1 billion of the five-year notes on Tuesday at 99.869 to yield 2.528%, or 60 bps over Treasuries.

IBM’s 3.3% notes due 2027 weakened to 99.29 over the morning from par on Wednesday afternoon.

The company sold $500 million of the 10-year notes on Tuesday at 99.469 to yield 3.363%, or 90 bps over Treasuries.

The information technology and computer company is based in Armonk, N.Y.

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