Primary action halts; bank, financial paper flat; telecom bonds mixed; credit spreads soft

By Cristal Cody

Tupelo, Miss., Dec. 22 – Activity in the investment-grade bond market stayed quiet over the session on Monday as desks cleared in front of the Christmas Day holiday, informed sources said.

“There’s nothing going on,” a syndicate source said. “Very quiet.”

No high-grade corporate bond issuance is expected for the rest of the short market week, sources said.

“I think we’re done for 2014,” one source said.

In the secondary market on Monday, bonds traded mostly unchanged, according to market sources.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were flat.

Citigroup Inc.’s 3.75% notes due 2024 were unchanged in secondary trading.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded flat from Friday.

Bonds in the telecommunications sector saw more activity over the day, a source said.

Verizon Communications Inc.’s 4.15% senior notes due 2024 firmed 1 basis point, while AT&T Inc.’s 3.9% notes due 2024 headed out 6 bps wider.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 65 bps.

JPMorgan stable

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) were unchanged at 115 bps bid in the secondary market, a source said.

JPMorgan sold $2 billion of the notes on May 6, 2014 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

Citigroup steady

Citigroup’s 3.75% notes due 2024 (Baa2/A-/A) were quoted at 128 bps bid, unchanged from Friday’s session, a market source said.

Citigroup sold $1.25 billion of the 10-year notes on June 9, 2014 at Treasuries plus 115 bps.

The bank is based in New York City.

Goldman flat

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) traded flat at 137 bps bid on Monday, according to a market source.

Goldman Sachs sold $2.25 billion of the notes on June 30 at Treasuries plus 135 bps.

The financial services company is based in New York City.

Verizon firms

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) firmed 1 bp to 148 bps offered after trading flat in Friday’s session, according to a market source.

Verizon sold $1.25 billion of the notes on March 10, 2014 at a spread of Treasuries plus 140 bps.

The telecommunications company is based in New York City.

AT&T soft

AT&T’s 3.9% notes due 2024 (A3/A-/A) eased 6 bps on Monday to 141 bps bid, a market source said.

AT&T sold $1 billion of the notes on March 5, 2014 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

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