Morning Commentary: Spreads tighter overall in secondary trading; bank, financial paper eases

By Aleesia Forni

Virginia Beach, June 30 – High-grade credit spreads improved early Tuesday, while bank and financial paper was trading mostly wider to open the session.

The Markit CDX North American Investment Grade series 23 index was 2 basis points tighter at a spread of 69 bps.

Citigroup Inc.’s 3.3% senior notes due 2025 widened 3 basis points, while Barclays plc’s 2.875% notes due 2020 eased 6 bps.

Citigroup weaker

Citigroup’s 3.3% notes due 2025 eased 3 bps to 149 bps bid, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

Barclays eases

Barclays’ 2.875% notes due 2020 eased 6 bps to 151 bps bid in secondary trading, a market source said.

Barclays sold $1 billion of the notes (Baa3/BBB/A) on June 1 at Treasuries plus 142 bps.

The financial services company is based in London.

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