Morning Commentary: Cigna, Lloyds bonds trade mostly softer ahead of Fed statement

By Cristal Cody

Tupelo, Miss., March 18 – Investment-grade corporate bonds traded flat to softer over the morning as market participants wait for the outcome of the Federal Reserve’s two-day policy meeting that ends on Wednesday, sources said.

Cigna Corp.’s 3.25% senior notes due 2025 that priced a week ago traded about 1 basis point to 2 bps weaker than issuance.

Lloyds Banking plc’s new 2.4% senior notes due 2020 eased 1 bp in the secondary market.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 65 bps.

Cigna softens

Cigna’s 3.25% senior notes due 2025 traded 1 bp to 2 bps weaker at 116 bps offered, a market source said.

The company sold $900 million of the notes (Baa1/A/BBB+) on March 11 at 115 bps over Treasuries.

Cigna is a Bloomfield, Conn.-based health service company.

Lloyds eases

Lloyds Banking’s 2.4% notes due 2020 were seen 1 bp softer at 81 bps offered, according to a market source.

Lloyds sold $1 billion of the notes (A1/A/A) on March 12 at Treasuries plus 85 bps.

The retail bank is based in London.

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