Morning Commentary: Spreads stable; Wells Fargo, Marathon Petroleum mostly flat; Apple eases

By Cristal Cody

Tupelo, Miss., Sept. 4 – Despite more than $30 billion of supply brought over the past two sessions, investment-grade credit spreads remain stable, market sources said early Thursday.

The Markit CDX North American Investment Grade series 22 index ended unchanged on Wednesday at a spread of 57 basis points.

New bank and financial paper is expected to price over Thursday’s session from issuers including Bank of New York Mellon Corp., Barclays plc, Credit Suisse Group AG and the Bank of Nova Scotia.

In the secondary market, Wells Fargo & Co.’s 3.3% senior notes due 2024 brought on Tuesday traded flat to 1 bp softer, according to a market source.

Marathon Petroleum Corp.’s senior notes that priced earlier in the week traded mostly unchanged, a source said.

In other secondary trading, Apple Inc.’s 3.45% notes due 2024 were active but 2 bps wider, according to a market source.

Wells Fargo mostly flat

Wells Fargo’s 3.3% notes due 2024 (A2/A+/AA-) traded unchanged to modestly weaker at 93 bps offered, a market source said.

Wells Fargo sold $2.25 billion of the 10-year notes at Treasuries plus 92 bps on Tuesday.

The bank is based in San Francisco.

Marathon Petroleum mixed

Marathon Petroleum’s 3.625% notes due 2024 (Baa2/BBB/) were wrapped around issuance at 125 bps offered, a market source said.

The company sold $750 million of the notes on Tuesday at Treasuries plus 125 bps.

Marathon Petroleum’s tranche of 4.75% notes due 2044 brought on Tuesday was quoted 1 bp wider at 166 bps offered.

The company sold $800 million of the bonds Treasuries plus 165 bps.

Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.

Apple eases

Apple’s 3.45% notes due 2024 (Aa1/AA+/) traded 2 bps softer at 78 bps offered, a market source said.

The company sold $2.5 billion of the notes at a spread of Treasuries plus 77 bps on April 29.

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

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