Morning Commentary: High-grade bond supply in works; bonds mixed; Goldman Sachs firms

By Cristal Cody

Eureka Springs, Ark., Nov. 15 – Investment-grade bond supply on Tuesday is expected to include offerings from Simon Property Group, LP and Plains All American Pipeline, LP.

Deal volume was strong on Monday with more than $10 billion of bonds priced during the session.

High-grade bonds were mixed in the secondary market as Treasuries rallied early Tuesday.

Goldman Sachs Group Inc.’s new 3.5% notes due 2026 traded about 1.5 basis points better than where the notes priced on Thursday.

Secondary trading volume totaled $18.23 billion on Monday, according to Trace. The majority of bonds that traded declined during the session. Of the 5,745 issues traded, 4,497 declined, 994 advanced and 29 bonds were unchanged.

The three-month Libor yield was unchanged at 91 bps over the morning.

Goldman improves

Goldman Sachs Group’s 3.5% notes due 2026 were quoted in secondary trading at 136 bps offered, according to a market source.

Goldman Sachs sold $2.75 billion of the 10-year notes on Thursday at a spread of 137.5 bps over Treasuries.

Goldman is a New York-based banking, securities and investment management company.

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