Morning Commentary: High-grade bond market activity thins before holiday; Tyson Foods active

By Cristal Cody

Tupelo, Miss., July 3 – Little activity is expected in the high-grade bond market on Monday ahead of the early market close.

The bond markets will close at 2 p.m. ET and remain closed on Tuesday for the Fourth of July holiday.

The secondary market also was mostly quiet over the morning.

Tyson Foods Inc.’s senior notes (Baa2/BBB/BBB) are trading better than where the notes priced in May.

The company’s 4.55% notes due June 2, 2047 traded early Monday at 106.47, up from 105.53 on Friday, a market source said.

Tyson sold $750 million of the 30-year notes at 99.416 to yield 4.586%, or a spread of Treasuries plus 163 basis points, on May 23.

Tyson’s 3.55% notes due June 2, 2027 were flat early Monday and last traded on Friday at 100.94.

The $1.35 billion tranche of 10-year notes priced on May 23 at 99.833 to yield 3.57%, or a Treasuries plus 128 bps spread.

Tyson is a Springdale, Ark.-based food company.

On Friday, $12.56 billion of investment-grade issues were traded overall, according to Trace.

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