Morning Commentary: High-grade bonds stable in early trade; Spectra Energy, Walgreens flat

By Cristal Cody

Tupelo, Miss., April 8 – High-grade bonds were mostly stable in early secondary trading on Wednesday with traders focused on the release later in the day of the minutes from the Federal Reserve’s March policy meeting, sources said.

Spectra Energy Partners LP’s 3.5% senior notes due 2025 brought in March traded flat over the morning.

Walgreens Boots Alliance Inc.’s 3.8% senior notes due 2024 were active but unchanged.

The three-month Libor yield was flat at 27 basis points early Wednesday.

The Markit CDX North American Investment Grade series 23 index closed 1 bp tighter on Tuesday at a spread of 60 bps.

Spectra Energy unchanged

Spectra Energy Partners’ 3.5% notes due 2025 were unchanged at 139 bps offered, a market source said.

The company sold $500 million of the notes (Baa2/ BBB/) on March 9 at a spread of Treasuries plus 135 bps.

The natural gas transmission and production company is based in Houston.

Walgreens flat

Walgreens Boots Alliance’s 3.8% notes due 2024 traded flat at 137 bps offered, a market source said.

The company sold $2 billion of the notes (Baa2/BBB/) at Treasuries plus 145 bps as part of an $8 billion seven-tranche offering on Nov. 6.

Walgreens Boots Alliance is a subsidiary of Deerfield, Ill.-based drugstore chain Walgreen Co.

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