Morning Commentary: Primary action slows; Standard Chartered, Societe Generale notes tighten

By Cristal Cody

Eureka Springs, Ark., Aug. 18 – High-grade primary action in the bond market is expected to slow over Thursday and Friday as market participants head off for end-of-summer vacations.

In the secondary market, Standard Chartered plc’s 4.3% notes due 2027 that priced on Tuesday traded more than 10 basis points better than issuance.

Societe Generale SA’s 4.25% notes due 2026 traded about 8 bps tighter than where the notes priced on Tuesday.

The Markit CDX North American Investment Grade index opened the session mostly unchanged at a spread of 71 bps.

The three-month Libor yield was steady early Thursday at 80 bps.

On Wednesday, $16.9 billion of investment-grade issues were traded, compared to $15.68 billion on Tuesday and $11.53 billion on Monday, according to Trace.

Standard Chartered firms

Standard Chartered’s 4.3% notes due 2027 tightened to 268 bps offered in the secondary market, a source said.

Standard Chartered sold $1.25 billion of the notes (A1/BBB/A+) on Tuesday at Treasuries plus 280 bps.

The banking and financial services company is based in London.

Societe Generale improves

Societe Generale’s 4.25% notes due 2026 firmed to 267 bps offered, according to a market source.

The company sold $1 billion of the Tier 2 notes (Baa3/BBB/A) on Tuesday at a spread of 275 bps over Treasuries.

Societe Generale is a Paris-based banking and financial services company.

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