Morning Commentary: Chevron, Eli Lilly senior notes firm 4 bps to 5 bps in secondary trading

By Cristal Cody

Tupelo, Miss., Feb. 26 – New high-grade bonds priced recently by Chevron Corp. and Eli Lilly & Co. traded 4 basis points to 5 bps better than issuance, according to a market source early Thursday.

Chevron’s 1.961% senior notes due 2020 were quoted 5 bps better in the secondary market.

Eli Lilly’s senior notes (A2/ AA-) brought on Tuesday improved 4 bps.

Traders were focused on a heavy round of economic data and new supply expected later in the session from Xerox Corp., HSBC USA, Inc., LyondellBasell Industries NV and Williams Cos., Inc.

The Markit CDX North American Investment Grade index was unchanged at a spread of 62 bps.

Chevron better

Chevron’s 1.961% notes due 2020 tightened to 45 bps offered, a market source said.

The company sold $1.75 billion of the notes (Aa1/AA/) on Tuesday at a spread of Treasuries plus 50 bps.

The petroleum, chemical, mining, power and energy company is based in San Ramon, Calif.

Eli Lilly tightens

Eli Lilly’s 2.75% notes due 2025 traded 4 bps better at 76 bps offered, according to a market source.

The company sold $800 million of the 10-year notes at 80 bps over Treasuries on Tuesday.

Eli Lilly’s tranche of 3.7% notes due 2045 firmed to 111 bps offered, the source said.

The issue priced on Tuesday in an $800 million offering at 115 bps over Treasuries.

Eli Lilly is a pharmaceutical company based in Indianapolis.

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