Morning Commentary: Investment-grade bonds soften; Ross Stores mostly flat; Tyson eases

By Cristal Cody

Tupelo, Miss., Sept. 16 – High-grade corporate bonds traded mostly softer early Tuesday while supply is expected to thin as the two-day Federal Reserve policy meeting kicks off, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to a spread of 62 bps on Monday.

Ross Stores Inc.’s 3.375% senior notes due 2024 that priced on Monday traded wrapped around issuance to 1 bp weaker in secondary trading, a source said.

Tyson Foods Inc.’s 3.95% senior notes due 2024 have softened about 10 bps since the start of the month after the company completed its acquisition of Hillshire Brands Co., a source said.

Ross Stores flat to softer

Ross Stores’ 3.375% notes due 2024 (A3/A-/) were quoted early Monday at 88 bps offered, according to a market source.

The company sold $250 million of the notes on Monday at a spread of Treasuries plus 87 bps.

The department store chain is based in Pacifica, Calif.

Tyson widens

Tyson Foods’ 3.95% notes due 2024 (Baa3/BBB/BBB) eased about 1 bp in early trading to 138 bps offered, a market source said.

The notes were quoted at the start of the month at 128 bps offered.

Tyson Foods sold $1.25 billion of the 10-year notes at Treasuries plus 150 bps on Aug. 5.

The meat and prepared foods company is based in Springdale, Ark.

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