Morning Commentary: Wells Fargo notes firm; Halliburton bonds active; credit spreads tighten

By Cristal Cody

Tupelo, Miss., Dec. 1 – High-grade bonds and credit spreads remained mostly firm as Tuesday’s market session got underway.

Wells Fargo & Co.’s new 2.55% senior holding company notes due 2020 that priced on Monday traded 3 basis points better in the secondary market.

Halliburton Co.’s 5% senior notes due 2045 brought to market earlier in November were quoted about 4 bps tighter.

The Markit CDX North American Investment Grade 25 index opened the session about 1 bp tighter at a spread of 83 bps.

The index has ranged from a low spread of 60.7 bps to a high spread of 94.8 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

The three-month Libor yield was unchanged at 41 bps.

Wells Fargo improves

Wells Fargo’s 2.55% notes due 2020 (A2/A+/AA-) traded better at 90 bps offered in secondary trading, a source said.

The company sold $2.1 billion of the notes at a spread of Treasuries plus 93 bps on Monday as part of a total $2.5 billion two-tranche offering.

The bank is based in San Francisco.

Halliburton firms

Halliburton’s 5% bonds due 2045 (A2/A/A-) firmed about 4 bps to 187 bps offered, a market source said.

The company sold $2 billion of the bonds on Nov. 5 at a spread of Treasuries plus 200 bps.

The diversified energy services company is based in Houston.

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