Morning Commentary: Stryker tightens; ConocoPhillips eases; HSBC improves slightly; CDX flat

By Cristal Cody

Eureka Springs, Ark., March 7 – High-grade bonds opened mostly tighter in the secondary market on Monday with energy bonds modestly softer ahead of a full week of central bank meetings, including the European Central Bank.

Stryker Corp.’s senior notes (Baa1/A) traded about 3 basis points to 6 bps tighter in the secondary market at the start of the day.

ConocoPhillips Co.’s 4.95% senior notes due 2026 that priced late in the previous week eased 3 bps.

HSBC Holdings plc’s 4.35 senior notes due 2026 brought to market last week traded about 1 bp better.

The Markit CDX North American Investment Grade index opened mostly unchanged to modestly softer at a spread of 95 bps.

The three-month Libor yield was stable early Monday at 63 bps.

Stryker improves

Stryker’s 3.5% notes due 2026 firmed 3 bps from Friday to 159 bps offered, a market source said.

The company sold $1 billion of the bonds on Thursday at a spread of Treasuries plus 175 bps.

Stryker is a medical technology company based in Kalamazoo, Mich.

ConocoPhillips eases

ConocoPhillips’ 4.95% notes due 2026 traded 3 bps softer at 315 bps offered early Monday, according to a market source.

The notes were quoted at 314 bps bid, 312 bps offered in the secondary market on Friday.

ConocoPhillips sold $1.25 billion of the bonds (Baa2/A/A-) on Thursday at 312.5 bps over Treasuries.

The energy company is based in Houston.

HSBC firms

HSBC Holdings’ 4.3% notes due 2026 improved about 1 bp from Friday to 235 bps offered, a market source said.

HSBC sold $3 billion of the notes (A1/A/AA-) on Tuesday at a spread of Treasuries plus 250 bps.

The banking and financial services group is based in London.

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