Morning Commentary: Investment-grade bonds mixed in thin trade; Amazon long bonds firm

By Cristal Cody

Tupelo, Miss., Dec. 24 – High-grade bonds were mixed in thin trading early Wednesday as most desks remain half-staffed in front of the Christmas Day holiday, market sources said.

Amazon.com, Inc.’s 4.95% senior notes due 2044 that priced in early December traded 2 basis points tighter, a source said.

Gilead Sciences Inc.’s 4.5% senior notes due 2045 were mostly unchanged, according to a market source.

The Markit CDX North American Investment Grade series 23 index closed 1 bp tighter at a spread of 64 bps on Tuesday.

Amazon.com firms

In the secondary market, Amazon.com’s 4.95% notes due 2044 (Baa1/AA-/) firmed 2 bps to 198 bps offered, a source said.

The company sold $1.5 billion of the notes at a spread of Treasuries plus 205 bps on Dec. 2.

The online retailer is based in Seattle.

Gilead Sciences steady

Gilead Sciences’ 4.5% notes due 2045 (A3/A-/) traded flat to 1 bp softer at 137 bps offered, according to a market source.

Gilead Sciences sold $1.75 billion of the bonds at Treasuries plus 145 bps on Nov. 12.

The biopharmaceutical company is based in Foster City, Calif.

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