Morning Commentary: Investment-grade bonds flat to better in early trade; Merck stable

By Cristal Cody

Tupelo, Miss., Feb. 11 – High-grade corporate bonds traded mostly unchanged to tighter on Wednesday as the session opened, sources said.

Merck & Co., Inc.’s bonds (A2/AA/) that priced in the previous week were stable in early secondary trading.

The Markit CDX North American Investment Grade index closed unchanged on Tuesday at a spread of 66 basis points.

Merck unchanged

Merck’s 2.75% notes due 2025 were unchanged in early trading at 85 bps bid, a market source said.

Merck sold $2.5 billion of the notes at a spread of Treasuries plus 95 bps on Thursday.

The company’s tranche of 3.7% notes due 2045 traded flat at 121 bps offered, according to the market source.

Merck placed $2 billion of the bonds at Treasuries plus 130 bps in Thursday’s offering.

The health care and pharmaceutical company is based in Whitehouse Station, N.J.

© 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.