Morning Commentary: Investment-grade bonds mostly better; JPMorgan firms; Microsoft improves

By Cristal Cody

Tupelo, Miss., Feb. 19 – High-grade corporate bonds remained mostly better early Thursday after spreads improved in the previous session, sources said.

The Markit CDX North American Investment Grade index firmed 1 basis point to a spread of 64 bps on Wednesday.

In early trading, JPMorgan Chase & Co.’s 3.125% notes due 2025 were quoted 4 bps tighter and about 8 bps better from a week ago.

Microsoft Corp.’s long bonds brought in the previous week continued to firm in the secondary market.

JPMorgan tightens

JPMorgan Chase’s 3.125% notes due 2025 tightened 4 bps to 117 bps offered, a market source said.

The notes (A3/A/A+) were quoted on Feb. 12 flat at 125 bps bid.

JPMorgan sold $2.5 billion of the notes on Jan. 16 at a spread of Treasuries plus 145 bps.

The financial services company is based in New York City.

Microsoft firms

Microsoft’s 4% bonds due 2055 firmed to 141 bps offered, about 2 bps better from Wednesday, according to a market source.

Microsoft sold $2.25 billion of the bonds (Aaa/AAA/) on Feb. 9 at 153 bps over Treasuries.

The computer software company is based in Redmond, Wash.

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