Morning Commentary: Investment-grade bonds mixed; Mondelez International notes improve

By Cristal Cody

Eureka Springs, Ark., Oct. 21 – New investment-grade bonds were mixed in secondary trading early Friday.

Mondelez International, Inc.’s notes that priced on Wednesday traded about 3 basis points to 5 bps tighter in the secondary market.

The Markit CDX North American Investment Grade index opened unchanged to modestly softer at a spread of 74 bps.

The three-month Libor yield was unchanged at the start of the day at 88 bps.

High-grade secondary trading volume totaled $16.45 billion on Thursday, compared to $18.1 billion on Wednesday, $17.25 billion on Tuesday and $13.87 billion on Monday, according to Trace.

Mondelez firms

Mondelez International’s 1.625% notes due 2019 firmed to 70 bps offered in secondary trading, a source said.

The company sold $1.75 billion of the three-year notes on Wednesday at a spread of 75 bps over Treasuries.

The tranche of 2% notes due 2021 improved to 82 bps offered in the secondary market.

Mondelez priced $1.5 billion of the five-year notes in Wednesday’s sale at Treasuries plus 85 bps.

Mondelez is an East Hanover, N.J.-based manufacturer of biscuits, chocolate, gum, candy and other products.

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