Morning Commentary: High-grade market action slows ahead of holiday; Goldman paper improves

By Cristal Cody

Tupelo, Miss., Feb. 17 – Activity in the high-grade bond market stayed mostly quiet early Friday with a long holiday weekend ahead.

No issuers were reported in the deal pipeline as the session opened.

The bond markets will be closed on Monday for the Presidents Day holiday. The markets were not scheduled to close early on Friday.

In the secondary market, Goldman Sachs Group Inc.’s 3.85% notes due Jan. 26, 2027 that were reopened on Monday traded modestly better.

High-grade secondary trading volume has been heavy over the week. On Thursday, $23.9 billion of investment-grade bonds were traded, compared to $24.6 billion on Wednesday, $23.7 billion on Tuesday and $16.6 billion on Monday, according to Trace.

Goldman better

Goldman Sachs’ 3.85% notes due Jan. 26, 2027 were up modestly at 100.49 in early secondary trading, a source said.

The notes (A3/A) headed out on Thursday at 100.45.

Goldman Sachs sold $1.25 billion of the 10-year notes in a reopening on Monday at 100.146 to yield 3.832% and a spread of Treasuries plus 140 basis points.

The company originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%, or Treasuries plus 148 bps.

The banking, securities and investment management company is based in New York.

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