Midday Commentary: High-grade spreads flat to tighter; Apple mixed; Morgan Stanley firms

By Cristal Cody

Tupelo, Miss., May 1 - Spreads were unchanged to slightly tighter early Thursday as the market geared up for issuance from Ryder System Inc., Mattel Inc. and other investment-grade rated companies, according to sources.

The Markit CDX North American Investment Grade series 22 index closed on Wednesday 2 basis points tighter at a spread of 64 bps.

Apple Inc.'s new bonds (Aa1/AA+/) were mixed in midday trading, with the long end slightly wider, according to a market source.

Morgan Stanley's 3.875% notes due 2024 were quoted about 2 bps better in early trading.

Apple mixed

Apple's 1.05% notes due 2017 were unchanged in midday trading at 17 bps bid, a source said.

The notes traded late Wednesday at 17 bps bid, 15 bps offered.

Apple sold $1.5 billion of the three-year notes at 18 bps over Treasuries on Tuesday.

On the long end of Apple's $12 billion seven-tranche offering brought on Tuesday, the 4.45% notes due 2044 eased to 102 bps bid, according to a market source.

The bonds were quoted going out on Wednesday at 101 bps bid, 99 bps offered.

Apple sold $1 billion of the bonds at Treasuries plus 100 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

Morgan Stanley firms

Morgan Stanley's 3.875% notes due 2024 tightened about 2 bps to 126 bps offered, a market source said early Thursday.

Morgan Stanley sold $3 billion of the notes (Baa2/A-/A-) on April 23 at Treasuries plus 130 bps.

The financial services company is based in New York City.

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