Morning Commentary: High-grade primary quiet; Microsoft, Alphabet firm; Libor yield unchanged

By Cristal Cody

Eureka Springs, Ark., Aug. 30 – U.S. investment-grade corporate deal action was quiet early Tuesday with no reported issuers, while bonds traded modestly better in the secondary market.

Microsoft Corp.’s 2.4% senior notes due 2026 that priced at the start of the month traded about 2 basis points tighter.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 that priced in early August tightened about 3 bps.

The three-month Libor yield was unchanged at 83 bps.

On Monday, $14.5 billion of high-grade issues were traded, according to Trace.

Microsoft firms

Microsoft’s 2.4% notes due 2026 were quoted about 2 bps tighter at 76 bps offered in secondary trading early Tuesday, according to a market source.

The company sold $4 billion of the notes (Aaa/AAA) on Aug. 1 at 90 bps over Treasuries.

The computer software company is based in Redmond, Wash.

Alphabet improves

Alphabet’s 1.998% notes due 2026 traded about 3 bps tighter early Tuesday at 58 bps offered in the secondary market, a source said.

Alphabet priced $2 billion of the notes (Aa2/AA) on Aug. 2 at a spread of 68 bps over Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

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