Light deal volume forecast over short holiday week; Walgreens eases; Whole Foods, Kroger flat

By Cristal Cody

Tupelo, Miss., July 3 – The high-grade bond market stayed quiet on Monday ahead of the Fourth of July holiday.

The bond markets closed early at 2 p.m. ET and will be closed on Tuesday for the holiday.

Market sources forecast about $5 billion to $10 billion of new issue volume over the week.

On Monday, the three-month Libor yield reached its highest level since March 2009 at 1.3007%, a source said.

In the secondary market, Walgreens Boots Alliance Inc.’s 3.45% notes due June 1, 2026 eased about 1 basis point. The notes traded about 5 bps tighter on Friday, a day after the retailer announced it will abandon plans to acquire Rite Aid Corp. and instead purchase more than 2,100 Rite Aid stores.

Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 were unchanged.

Kroger Co.’s senior notes (Baa1/BBB/BBB) were flat in the secondary market but remain soft.

The Markit CDX North American Investment Grade index firmed about 1 bp to a spread of 60 bps over the short session.

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