Market activity quiet ahead of jobs data, holiday; Coca-Cola gains; credit spreads weaken

By Cristal Cody

Eureka Springs, Ark., Sept. 1 – Investment-grade bond market activity stayed mostly quiet on Thursday ahead of the August employment report to be released on Friday and the upcoming Labor Day holiday weekend.

The session was “painfully quiet,” while the first three days of the week were busy, a source said.

High-grade issuance is expected to ramp up following the holiday, sources report.

“September [is] expected to be huge for new issues,” one source said.

The Markit CDX North American Investment Grade index ended the session 1 basis point weaker at a spread of 74 bps.

Coca-Cola Co.’s notes (Aa3/AA-/A+) traded modestly better over the quiet trading session.

Earlier, Microsoft Corp.’s 2.4% senior notes due 2026 traded 2 bps softer.

Coca-Cola firms

Coca-Cola’s 2.25% notes due 2026 headed out on Thursday at 68 bps bid, 65 bps offered, according to a trader.

The bonds were quoted at the start of the day at 66 bps offered.

Coca-Cola sold $1 billion of the notes on Monday at a spread of 70 bps over Treasuries.

The beverage company is based in Atlanta.

Microsoft eases

Microsoft’s 2.4% notes due 2026 were quoted 2 bps weaker early Thursday at 78 bps offered, a source said.

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.

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