Morning Commentary: Duke Energy bonds firm; Libor yield hits 81 bps; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., Aug. 10 – Duke Energy Corp.’s senior notes (Baa1/BBB+/BBB+), which were brought to market in the previous session to fund a portion of costs to acquire Piedmont Natural Gas Co., Inc., firmed about 2 basis points in secondary trading.

Meanwhile, the three-month Libor yield rose 2 bps to 81 bps early Wednesday.

The Markit CDX North American Investment Grade index opened the day mostly unchanged at a spread of 71 bps.

On Tuesday, $16.17 billion of investment-grade issues were traded, up from $12.39 billion on Monday, according to Trace.

Duke Energy firms

Duke Energy’s 2.65% notes due 2026 traded at 113 bps offered, according to a market source.

The company sold $1.5 billion of the 10-year notes on Tuesday at a spread of 115 bps over Treasuries.

Duke Energy’s 3.75% notes due 2046 tightened to 148 bps offered in the secondary market, the source said.

The notes priced on Tuesday in a $1.5 billion tranche at a spread of 150 bps over Treasuries.

The diversified energy company is based in Charlotte, N.C.

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