Morning Commentary: Market focuses on data; Stryker bonds firm; HSBC paper modestly better

By Cristal Cody

Eureka Springs, Ark., March 4 – High-grade bonds traded mostly better early Friday as economic data came in mixed.

Stryker Corp.’s 4.625% senior notes due 2046 that priced on Thursday traded 7 basis points tighter than issuance early Friday.

HSBC Holdings plc’s senior notes (A1/A/AA-) sold on Tuesday were unchanged to about 1 bp tighter.

The Labor Department reported on Friday that February employment rose by 242,000, much higher than the 195,000 forecasted.

The unemployment rate was flat at 4.9%, in line with expectations.

In other data, the U.S. Commerce Department announced that the trade deficit in January widened to $45.7 billion from a revised $44.7 billion deficit in December.

The three-month Libor yield was stable over the morning at 63 bps.

High-grade bond trading volume was $19.39 billion on Thursday, compared to $22.46 billion of investment-grade issues traded on Wednesday, according to Trace.

Stryker firms

Stryker’s 4.625% bonds due 2046 tightened to 198 bps offered in the secondary market, a source said.

The company sold $1 billion of the bonds at 205 bps over Treasuries on Thursday as part of a $3.5 billion four-part offering of senior notes (Baa1/A).

Stryker is a medical technology company based in Kalamazoo, Mich.

HSBC mostly unchanged

HSBC Holdings’ 4.3% notes due 2026 were seen about 1 bp tighter in the secondary market at 236 bps offered, a source said.

HSBC sold $3 billion of the notes on Tuesday at a spread of Treasuries plus 250 bps.

The banking and financial services group is based in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.