Morning Commentary: Primary quiet; focus turns to high-grade bank supply on earnings reports

By Cristal Cody

Tupelo, Miss., Jan. 12 – Deal action stayed quiet over Friday morning in the high-grade bond market following a strong week of supply.

Market attention was turning to the release of bank earnings and expected financial issuance on the near-term horizon, according to sources.

JPMorgan Chase & Co. and Wells Fargo & Co. both released fourth-quarter earnings on Friday before the market opened.

Coming up, Citigroup Inc. will release earnings on Tuesday, while Bank of America Corp. and Goldman Sachs Group, Inc. release earnings reports on Wednesday and Morgan Stanley releases earnings on Thursday.

Elsewhere, the three-month Libor yield was reported up 1 basis point at 1.71% at the start of the day.

In other market activity, trading has been heavy in investment-grade issues. On Thursday, $21.98 billion of bonds were traded, compared to $23.36 billion on Wednesday and $20.71 billion on Tuesday, according to Trace. On Monday, $14.67 billion of investment-grade issues were traded.

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