Morning Commentary: Investment-grade bonds mixed in early trade; Citi tightens; Goldman eases

By Cristal Cody

Tupelo, Miss., Oct. 30 – New investment-grade bonds were mixed in early secondary trading on Friday.

Citigroup Inc.’s 2.65% notes due 2020, quoted flat on Thursday, traded 4 basis points tighter at the start of the session.

Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2025, which firmed 5 bps in the secondary market on Thursday, eased 2 bps in trading early Friday.

The amount of high-grade issues traded on Thursday dropped to $16.6 billion, down from $18.1 billion of bonds traded on Wednesday, according to Trace.

The Markit CDX North American Investment Grade 25 index eased 1 bp on Thursday to close at a spread of 79 bps.

Citigroup firms

Citigroup’s 2.65% notes due 2020 firmed 4 bps to 116 bps offered in trading early Friday, a market source said.

The notes headed out unchanged on Thursday at 128 bps bid.

Citigroup sold $2.7 billion of the notes (Baa1/A-/A) on Oct. 19 at a spread of 133 bps plus Treasuries.

The financial services company is based in New York.

Goldman eases

Goldman’s 4.25% subordinated notes due 2025 eased 2 bps to 207 bps offered, according to a market source.

The notes traded late Thursday afternoon 5 bps tighter at 213 bps bid.

Goldman priced $2 billion of the notes (Baa2/BBB+/A-) on Oct. 16 at Treasuries plus 230 bps.

The financial services company is based in New York City.

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