Morning Commentary: Primary picks up; CBS, National Australia Bank firm; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., July 7 – Primary action is set to stay strong over Thursday’s session with at least five high-grade issuers including Raymond James Financial Inc. and Sumitomo Corp. preparing to price bonds ahead of Friday’s June jobs report.

CBS Corp.’s $700 million offering of 2.9% senior notes due 2027 (Baa2/BBB) that priced on Wednesday traded 5 basis points tighter in the secondary market.

National Australia Bank Ltd.’s new 1.875% notes due 2021 traded 5 bps better than issuance early Thursday.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 77 bps.

The three-month Libor yield was stable at 66 bps.

On Wednesday, $18.49 billion of investment-grade issues were traded, up from $14.47 billion on Tuesday, according to Trace.

CBS tightens

CBS’ 2.9% senior notes due 2027 tightened to 165 bps offered in secondary trading, a market source said.

CBS sold $700 million of the notes on Wednesday at 170 bps over Treasuries.

The broadcasting company is based in New York.

National Australia Bank firms

National Australia Bank’s 1.875% notes due 2021 traded 5 bps better than issuance at 95 bps offered, according to a market source.

The bank sold $1.25 billion of the notes (Aa2/AA-/AA-) on Tuesday at a spread of 100 bps over Treasuries.

National Australia bank is based in Melbourne.

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