Morning Commentary: Investment-grade credit spreads soft; Citigroup flat; Gilead tightens

By Cristal Cody

Tupelo, Miss., Nov. 14 – High-grade credit spreads opened on Friday slightly weaker with new issues mixed in secondary trading, according to market sources.

The Markit CDX North American Investment Grade series 23 index closed on Thursday 1 basis point wider at a spread of 65 bps.

Citigroup Inc.’s 4.3% subordinated notes due 2026 that priced on Thursday were unchanged in early trading on Friday, a market source said.

Gilead Sciences Inc.’s senior notes (A3/A-/) brought on Wednesday traded about 3 bps to 5 bps tighter on Friday, according to a market source.

Citigroup flat

Citigroup’s 4.3% subordinated notes due 2026 traded flat at 200 bps offered, a market source said.

Citigroup sold $1 billion of the notes (Baa3/BBB+/A-) with a spread of Treasuries plus 200 bps on Thursday.

The notes sold at 99.536 to yield 4.35%

The bank is based in New York.

Gilead Sciences firms

Gilead Sciences’ 3.5% notes due 2025 traded 5 bps tighter at 110 bps offered, a market source said.

The company sold $1.75 billion of the notes on Wednesday at Treasuries plus 115 bps.

The tranche of 4.5% notes due 2045 were quoted tighter at 142 bps offered.

Gilead Sciences sold $1.75 billion of the bonds at Treasuries plus 145 bps.

The biopharmaceutical company is based in Foster City, Calif.

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