Morning Commentary: Barclays tightens; Alphabet modestly better; Libor yield rises; CDX firms

By Cristal Cody

Eureka Springs, Ark., Aug. 5 – New investment-grade bonds priced over the week traded mostly tighter in the secondary market early Friday, while traders focused on the July U.S. jobs report.

Barclays plc’s notes that priced on Wednesday tightened about 8 basis points to 10 bps in secondary trading.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 improved about 1 bp.

The Labor Department reported non-farm payrolls rose 255,000 in July, much higher than the 180,000 forecasted.

The Markit CDX North American Investment Grade index opened the session 1 bp tighter at a spread of 72 bps.

The three-month Libor yield was up 1 bp at 78 bps early Friday.

On Thursday, $16.35 billion of investment-grade issues were traded, compared to $17.77 billion on Wednesday, $17.29 billion on Tuesday and $12.98 billion on Monday, according to Trace.

Barclays firms

Barclays’ 3.2% notes due 2021 firmed to 207 bps offered in the secondary market, a source said.

Barclays sold $1.35 billion of the notes on Wednesday at a spread of 215 bps over Treasuries.

Barclays’ reopened 5.2% subordinated notes due 2026 firmed 10 bps from issuance to 320 bps offered in secondary trading, according to the market source.

The company priced an $800 million add-on to the notes on Wednesday at a spread of 330 bps over Treasuries.

The financial services company is based in London.

Google improves

Alphabet’s 1.998% notes due 2026 traded about 1 bp tighter at 65 bps offered, a source said early Friday.

Alphabet priced $2 billion of the notes (Aa2/AA/) on Tuesday at a spread of 68 bps over Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

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