Morning Commentary: High-grade bond market quiet post-holiday; General Motors Financial mixed

By Cristal Cody

Tupelo, Miss., April 17 – Activity in the high-grade bond markets was light early Monday following the long Easter holiday weekend. There were no reported issuers in the day’s deal pipeline.

Australian financial services company Suncorp-Metway Ltd. (A1/A+/A+) is expected to kick off a roadshow in the United States and Asia this week for a dollar-denominated Rule 144A and Regulation S notes offering. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and UBS Securities LLC are arranging the roadshow.

In the secondary market on Monday, General Motors Financial Co. Inc.’s senior notes (Ba1/BBB-/BBB-) were mixed.

The three-month Libor yield was unchanged at the start of the session at 1.16%.

General Motors mixed

General Motors Financial’s 2.655% notes due April 13, 2020 softened to 100.32 early Monday from where the notes last traded on Thursday at 100.59, a market source said.

The company sold $1 billion of the three-year notes on April 10 at 99.86 to yield 2.699%, or Treasuries plus 120 basis points.

General Motors Financial’s 3.95% notes due April 13, 2024 were quoted over the morning better at 100.61 from where the notes last traded before the holiday weekend at 100.53.

The company sold $1.25 billion of the seven-year notes on April 10 at 99.83 to yield 3.978%, or Treasuries plus 180 bps.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

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