Morning Commentary: Investment-grade bonds mixed; Amazon firms; Wells Fargo flat

By Cristal Cody

Tupelo, Miss., Dec. 5 – High-grade bonds were mixed in early secondary trading as traders digested the November jobs report, market sources said.

The Labor Department announced on Friday that 321,000 jobs were added in November, higher than the 230,000 forecast. The unemployment rate was unchanged at 5.8%.

In the secondary market, Amazon.com, Inc.’s 4.95% senior notes due 2044 that priced on Tuesday traded more than 5 basis points better, a source said.

Wells Fargo & Co.’s 3.3% senior notes due 2024 were unchanged but remain nearly 10 bps wider since the issue priced in September, according to a market source.

The Markit CDX North American Investment Grade series 23 index ended on Thursday 1 bp weaker at a spread of 62 bps.

Amazon tightens

Amazon.com’s 4.95% notes due 2044 (Baa1/AA-/) were 5 bps better at 198 bps offered in early trading, a market source said.

The company sold $1.5 billion of the bonds at Treasuries plus 205 bps on Tuesday as part of a $6 billion five-part deal.

The online retailer is based in Seattle.

Wells Fargo improves

Wells Fargo’s 3.3% notes due 2024 (A2/A+/AA-) traded unchanged at 101 bps offered, according to a market source.

Wells Fargo sold $2.25 billion of the notes on Sept. 2 at a spread of Treasuries plus 92 bps.

The bank is based in San Francisco.

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