Morning Commentary: Investment-grade bonds mixed; Morgan Stanley firms; Anheuser-Busch eases

By Cristal Cody

Tupelo, Miss., Jan. 26 – High-grade bonds were mixed in early secondary trading on Tuesday with some supply on tap for the day. The first day of a two-day policy meeting by the Federal Reserve was also in focus.

Morgan Stanley & Co. Inc.’s 3.875% senior notes due 2026 that priced on Friday traded about 1 basis point tighter. Morgan Stanley plans to tap the market over the session with an offering of 20-year global medium-term notes, according to a 424B2 filing with the Securities and Exchange Commission.

Anheuser-Busch InBev Finance Inc.’s senior notes (A2/A-) mostly widened from Monday’s session.

The Markit CDX North American Investment Grade 25 index opened at a spread of 106 bps.

The three-month Libor yield was unchanged early Tuesday at 62 bps.

Morgan Stanley edges tighter

Morgan Stanley’s 3.875% notes due 2026 traded around 184 bps offered in the secondary market, a source said.

The notes traded modestly lower at 100.26 early in the session from where the paper headed out at 100.29 on Monday.

Moran Stanley sold $3 billion of the notes (A3/BBB+/A) on Friday at Treasuries plus 185 bps, or 99.795 to yield 3.9%.

The financial services company is based in New York City.

Anheuser-Busch softens

Anheuser-Busch’s 3.65% notes due 2026 widened 8 bps to 169 bps offered, a market source said.

The company sold $11 billion of the 10-year notes on Jan. 13 at Treasuries plus 160 bps, or 99.833 to yield 3.67%.

Anheuser-Busch’s 4.9% notes due 2046 were quoted about 2 bps softer in the secondary market at 204 bps offered. The notes traded modestly lower over the morning at 101.00 from 101.09 in the previous session.

The notes were sold in an $11 billion tranche at Treasuries plus 205 bps, or 99.765 to yield 4.915%, in the Jan. 13 sale.

The brewery is based in Leuven, Belgium.

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