Morning Commentary: Investment-grade primary market quiet; Chevron Phillips Chemical tightens

By Cristal Cody

Eureka Springs, Ark., Nov. 18 – The investment-grade primary market is expected to slow on Friday, while bonds traded mostly better in the secondary market.

Chevron Phillips Chemical Co. LLC’s 3.4% senior notes due 2026 that priced on Thursday tightened about 7 basis points in secondary trading.

Secondary trading volume was strong on Thursday with $20 billion of issues traded, compared to $19.18 billion on Wednesday, $20.28 billion on Tuesday and $18.23 billion on Monday, according to Trace.

The three-month Libor yield was steady at 91 bps early Friday.

Chevron Phillips Chemical’s 3.4% senior notes due 2026 tightened to 108 bps offered in secondary trading, a market source said.

The company sold $700 million of the 10-year notes (A2/A-) on Thursday at a spread of 115 bps over Treasuries.

Chevron Phillips Chemical is a The Woodlands, Texas-based petrochemical company owned by Chevron Corp. and Phillips 66.

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