Midday Commentary: Bond spreads flat; Apple, Morgan Stanley paper tighter in early trading

By Cristal Cody

Tupelo, Miss., May 2 - Investment-grade bond spreads were flat early Friday as traders digested the April jobs report, according to market sources.

The Markit CDX North American Investment Grade series 22 index ended unchanged on Thursday at a spread of 64 basis points.

The Labor Department reported that total non-farm payroll employment rose by 288,000 in April, higher than the 215,000 forecast.

The unemployment rate fell 0.4% to 6.3% in April.

In early trading, Apple Inc.'s long bonds tightened 3 bps, according to a market source.

Morgan Stanley's 3.875% notes due 2024 firmed 1 bp on Friday, a source said.

Apple firms

Apple's 4.45% notes due 2044 traded 3 bps better at 99 bps bid in early trading, a source said.

Apple sold $1 billion of the bonds (Aa1/AA+/) at Treasuries plus 100 bps on Tuesday as part of a $12 billion seven-tranche offering of notes.

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

Morgan Stanley better

Morgan Stanley's 3.875% notes due 2024 tightened 1 bp in early trading to 125 bps offered, according to a market source.

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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