Morning Commentary: Investment-grade bond market activity slows; General Motors active

By Cristal Cody

Tupelo, Miss., Dec. 19 – The high-grade bond market remained quiet on Tuesday morning with focus expected to be on the pending U.S. tax law changes.

Little deal action is expected over the remaining weeks of December with one source estimating zero issuance to up to $5 billion of volume for the rest of the year.

The secondary market continues to remain active with $12.85 billion of bonds traded on Monday, according to Trace data.

General Motors Co.’s senior notes (BBB/BBB) were active in trading early Tuesday after the company’s stock improved on Monday, a source said.

General Motors’ 4.2% notes due Oct. 1, 2027 traded over the morning at 102.58. The issue had several large trades of 5 million-plus bonds on Monday in the 103 handle area.

The Detroit-based automaker sold $750 million of the notes on Aug. 2 at 99.852 to yield 4.217% and a Treasuries plus 195 basis points spread.

General Motors’ stock was up 1.36% over the morning.

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