Morning Commentary: Investment-grade bonds mostly soft; Barclays, Morgan Stanley ease

By Cristal Cody

Tupelo, Miss., Sept. 21 – Bonds in the investment-grade market opened the session mostly softer and credit spreads leaked wider early Monday.

Barclays plc’s notes traded about 1 basis point weaker in the secondary market.

Morgan Stanley’s 4% senior notes due 2025 eased 2 bps.

The three-month Libor yield was down 3 bps at 32 bps over the morning.

The Markit CDX North American Investment Grade index widened to a spread of 82 bps early Monday. The index closed on Friday 2 bps weaker at a spread of 78 bps.

Barclays soft

Barclays’ 5.25% notes due 2045 eased 1 bp in the secondary market to 211 bps offered, a source said.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

The financial services company is based in London.

Morgan Stanley eases

Morgan Stanley’s 4% notes due 2025 traded 2 bps weaker at 151 bps offered, according to a market source.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at Treasuries plus 165 bps.

The financial services company is based in New York City.

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