Morning Commentary: Investment-grade bonds firm; Citi, Goldman paper improves

By Cristal Cody

Tupelo, Miss., July 14 – Investment-grade bond spreads narrowed, while bank and financial paper traded mostly tighter in front of expected supply from Toronto-Dominion Bank, Bed Bath & Beyond Inc. and Bank of Nova Scotia, according to market sources on Monday.

Citigroup Inc.’s 3.75% notes due 2024 and Goldman Sachs Group Inc.’s 3.85% notes due 2024 both traded about 1 basis point better, a source said.

The Markit CDX North American Investment Grade series 22 index ended unchanged on Friday at a spread of 58 bps.

Citi tightens

Citigroup’s 3.75% notes due 2024 (Baa2/A-/A) firmed 1 bp to 120 bps offered, according to a market source.

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

The bank is based in New York City.

Goldman firms

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) traded 1 bp tighter at 136 bps offered, a market source said.

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

The financial services company is based in New York City.

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