Morning Commentary: Australia and New Zealand Banking firms; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., July 13 – Investment-grade bonds were mixed in early secondary trading with market participants focused on global events, including the appointment of a new British prime minister on Wednesday.

Australia and New Zealand Banking Group, Ltd.’s 2.3% notes due 2021 that were reopened on Monday traded 4 basis points better in the secondary market on Wednesday.

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 at 67 bps.

Secondary trading volume climbed to $21.26 billion on Tuesday from $15.87 billion traded on Monday, according to Trace.

ANZ Banking firms

Australia and New Zealand Banking Group’s 2.3% notes due 2021 firmed 4 bps to 91 bps offered in secondary trading, a market source said.

The company priced a $500 million tap of the notes (Aa2/AA-/AA-) on Monday at 97 bps over Treasuries.

The financial services company is based in Melbourne.

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