Morning Commentary: Investment-grade bonds mostly soft; DirecTV eases; Deutsche widens

By Cristal Cody

Tupelo, Miss., April 17 – High-grade bonds traded mostly softer over the morning on Friday, according to market sources.

Deutsche Bank AG’s 4.5% subordinated tier 2 notes due 2025 traded wider than where the paper priced in March.

DirecTV Holdings LLC’s bonds were active but weaker ahead of the company’s first-quarter conference call on May 5.

The three-month Libor yield firmed 1 bp to 27 bps on Friday, a source said.

DirecTV eases

DirecTV’s 3.95% notes due 2025 (Baa2/BBB/BBB-) were quoted 3 bps softer at 160 bps offered, a market source said.

DirecTV Holdings and DirecTV Financing Co. sold $1.2 billion of the notes on Dec. 2 at a spread of Treasuries plus 175 bps.

The digital entertainment company is based in El Segundo, Calif.

Deutsche widens

Deutsche Bank’s 4.5% subordinated tier 2 notes due 2025 eased 4 bps to 270 bps offered, a market source said.

Deutsche Bank sold $1.5 billion of the notes (Ba1/BBB-/A-) on March 27 at 260 bps over Treasuries.

The bank is based in Frankfurt.

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