High-grade bond markets mostly quiet; bonds firm; HSBC improves; Duke Energy, AT&T tighten

By Cristal Cody

Eureka Springs, Ark., Dec. 23 – The high-grade bond market ended on a quiet note on Friday. Most participants still in the office were focused on leaving early ahead of the holiday weekend.

The bond markets closed at 2 p.m. ET and will be closed on Monday for the Christmas holiday.

The Markit CDX North American Investment Grade index ended mostly flat at a spread of 66 basis points.

HSBC Holdings plc’s 4.375% subordinated notes due 2026 were better in light secondary trading on Friday at 99.94. The notes last traded on Thursday at 99.83, according to a market source.

The $1.5 billion offering of notes (A2/BBB+/A+) priced on Nov. 16 at 99.992 to yield 4.376% and a spread of 215 bps over Treasuries.

Duke Energy Corp.’s 2.65% senior notes due 2026 came in 2 bps during the short session to 102 bps bid, according to a market source.

AT&T Inc.’s 4.125% notes due 2026 tightened 2 bps on Friday to head out at 155 bps bid.

Time Warner Inc.’s 2.95% notes due 2026 firmed about 1 bp to 140 bps bid.

AT&T announced plans in October to acquire Time Warner in an $85.4 billion cash-and-stock deal.

Apple Inc.’s 2.45% notes due 2026 tightened 4 bps on the day to 78 bps.

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