Morning Commentary: High-grade bonds mixed; Bank of America notes soft; JPMorgan paper firms

By Cristal Cody

Tupelo, Miss., Aug. 3 – High-grade bonds were mostly mixed in secondary trading early Monday.

Bank of America Corp.’s 3.875% senior notes due 2025 that priced a week ago eased 3 basis points on Monday but remain better than issuance.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 sold earlier in July were quoted 2 bps tighter in the secondary market.

The three-month Libor yield rose 1 bp to 31 bps on Monday.

The Markit CDX North American Investment Grade index was 1 bp softer early in the session at a spread of 71 bps.

Bank of America trades wider

Bank of America’s new 3.875% senior notes due 2025 eased 3 bps to 156 bps offered in secondary trading, a source said.

Bank of America sold $2.5 billion of the 10-year notes (Baa1/A-/A) on July 27 at a spread of Treasuries plus 167 bps.

The financial services company based in Charlotte, N.C.

JPMorgan firms

JPMorgan Chase’s 3.9% notes due 2025 traded 2 bps tighter at 145 bps offered in secondary trading, according to a market source.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at Treasuries plus 155 bps.

The financial services company is based in New York City.

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