Primary halts for strong jobs data; JPMorgan, Goldman Sachs firm; Hewlett Packard soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 6 – High-grade primary activity took a pause on Friday, capping off a $27 billion week for the bond market, while participants focused on the release of October’s employment data.

The Labor Department reported that U.S. payrolls increased 271,000 during the month, blowing away the 185,000 forecast and leading some players to predict that the Federal Reserve will increase interest rates at its next policy meeting.

Additionally, the unemployment rate fell to 5% from 5.1%.

One market source noted that it was looking very likely that the Fed rate hike, its first in nearly a decade, would come in mid-December.

The week ahead, which will be shortened due to the mid-week Veterans Day holiday, could see another $25 billion to $30 billion of issuance from a wide-ranging mix of borrowers, sources say.

Genworth MI Canada Inc. announced on Friday that the company is considering pricing a debenture offering, its first deal since 2014.

In the secondary market, JPMorgan Chase & Co.’s 4.25% subordinated notes due 2027 traded 4 bps tighter during the session.

Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2027 headed out 5 bps better.

Also in the secondary market, Hewlett Packard Enterprise Co.’s 4.9% senior notes due 2025 traded 4 bps wider over the day. The company on Friday ended the first full week of operations after Hewlett-Packard Co.’s official split into HP Inc. and Hewlett Packard Enterprise.

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