Morning Commentary: Mood in investment-grade bond market improves; Citi paper tightens; Apple firms

By Cristal Cody

Tupelo, Miss., Oct. 17 – Investment-grade bonds opened mostly better on Friday ahead of expected primary action, market sources said.

The Markit CDX North American Investment Grade series 23 index closed flat on Thursday at a spread of 74 basis points.

Citigroup Inc.’s 3.75% notes due 2024 firmed about 6 bps, though the notes continue to trade more than 15 bps wider from where the issue priced in June, a source said.

In other secondary trading, Apple Inc.’s 3.45% notes due 2024 tightened 4 bps, according to a market source.

Citi tightens

Citigroup’s 3.75% notes due 2024 tightened about 6 bps to 134 bps offered, according to a market source.

Citigroup sold $1.25 billion of the notes (Baa2/A-/A) on June 9 at a spread of Treasuries plus 115 bps.

The bank is based in New York City.

Apple firms

Apple’s 3.45% notes due 2024 (Aa1/AA+/) were quoted 4 bps tighter at 84 bps offered early Friday, according to a market source.

Apple sold $2.5 billion of the notes at a spread of Treasuries plus 77 bps on April 29.

The computer and mobile communications device company is based in Cupertino, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.