Midday Commentary: Positive tone continues in high-grade market as bank paper trades tighter

Virginia Beach, Va., April 11 - The tone of the high-grade bond market continued to be positive on Thursday, market sources noted early during the session.

One trader commented that bank and financial paper was 3 basis points to 5 bps tighter overall at midday.

Merrill Lynch's 6.875% notes due 2018 were trading 3 bps better to open Thursday's session, while Goldman Sachs' 6.15% bond was quoted 2 bps tighter.

Meanwhile, Citigroup's 6.375% notes firmed 10 bps on the day.

Merrill Lynch tightens

The secondary saw Merrill Lynch's 6.875% notes due 2018 tighten 3 bps to 167 bps bid on Thursday.

On April 22, 2008, the bank priced $5.5 billion 10-year notes at 320 bps over Treasuries.

Goldman Sachs firms

Meanwhile, Goldman Sachs' bond due 2018 tightened 2 bps to 157 bps bid early during the day's trading.

The bank priced $1.5 billion 6.15% 10-year bonds in April 2008 at Treasuries plus 237.5 bps.

Citigroup widens

In other trading, Citigroup's 6.375% notes due 2014 firmed 10 bps to 62 bps bid.

The bank priced $2.5 billion five-year notes at Treasuries plus 380 bps on Aug. 5, 2009.

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