Morning Commentary: Investment-grade issuers market bond offerings; MPLX softens; Apple mixed

By Cristal Cody

Tupelo, Miss., Feb. 13 – Several issuers are on deck to tap the high-grade primary market on Monday.

Japan Bank for International Cooperation plans to price guaranteed bonds.

Highwoods Realty LP is marketing 10-year notes.

Hexcel Corp. is offering 10-year senior notes.

Investment-grade bonds were mixed in the secondary market as the session got underway.

MPLX LP’s $2.25 billion of senior notes (Baa3/BBB-/BBB-) that priced in two tranches on Tuesday opened softer in secondary trading early Monday.

Apple Inc.’s notes (Aa1/AA+/) were mixed in the secondary market.

On Friday, $18.2 billion of investment-grade issues were traded, according to Trace.

MPLX weakens

MPLX’s 4.125% notes due March 1, 2027 softened to 99.94 early Monday from where the bonds went out on Friday at 100.03, according to a market source.

The $1.25 billion tranche of 10-year notes priced on Tuesday at 99.834 to yield 4.145% and a spread of Treasuries plus 175 basis points.

MPLX’s $1 billion offering of 5.2% notes due March 1, 2047, which priced at 99.304 to yield 5.246%, or Treasuries plus 220 bps, traded weaker at the start of the day at 100.26. The notes last traded on Friday in the secondary market at 100.60.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

Apple mixed

Apple’s 3.5% notes due Feb. 9, 2027 edged up to 100.90 in early secondary trading, a market source said.

The notes were seen on Friday afternoon at 100.81.

The company sold $2.25 billion of the bonds on Feb. 2 at par, or a spread of Treasuries plus 88 bps.

Apple’s 4.25% notes due Feb. 9, 2047 dropped to 101.00 on Monday from 101.36 in the secondary market on Friday.

The $1 billion tranche of bonds was priced in the Feb. 2 offering at 99.798 to yield 4.262%, or Treasuries plus 115 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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