Morning Commentary: High-grade action slows as SEC closes, holiday nears; trading thin

By Cristal Cody

Tupelo, Miss., Dec. 24 – Christmas cheer may be in short supply on the eve of the holiday with the U.S. Securities and Exchange Commission, among other government entities, closed.

No SEC-registered filings have been filed since Friday.

Little activity was expected anyway in the high-grade bond markets with most desks thinly staffed for the remainder of the year, sources report.

The bond markets will close at 2 p.m. ET on Monday and remain closed on Tuesday for the Christmas Day holiday.

December deal volume is set to post the weakest supply totals since the 2007-2008 financial crisis, according to market sources.

Nearly $9 billion of high-grade bonds have priced month to date.

As previously reported, the Dow Jones industrial average and S&P 500 are poised to post their worst December performance since the Great Depression of 1931, according to a market source.

Secondary trading light

Meanwhile, thin activity was seen in the secondary market over the morning on Monday.

On Friday, $11.3 billion of investment-grade bonds were traded, according to Trace.

Comcast Corp.’s 4.7% notes due Oct. 15, 2048 softened slightly to 101.45 in very light trading from 101.63 on Friday, according to a market source.

The senior notes (A3/A-/A-) were priced as part of a $27 billion 12-tranche offering.

Comcast sold $4 billion of the 30-year bonds on Oct. 12 at 99.918 to yield 4.705%, or a spread of 150 basis points over Treasuries.

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