Midday Commentary: Spreads unchanged in early trade; market focus on Fed; Apple bonds firm

By Cristal Cody

Tupelo, Miss., April 30 - Spreads held mostly flat in the investment-grade market early Wednesday with the primary calendar quiet as traders focused on the Federal Reserve policy rate decision expected later in the session, according to market sources.

The Markit CDX North American Investment Grade series 22 index closed on Tuesday unchanged at a spread of 66 basis points.

Apple Inc.'s bonds issued in 2013 and the new paper brought on Tuesday continued to trade actively, according to market sources.

Apple firms

Apple's 2.85% notes due 2021 firmed to 54 bps bid, 52 bps offered, a source said early Wednesday.

The notes (Aa1/AA+/) headed out in secondary trading on Tuesday at 55 bps bid, 53 bps offered.

Apple sold $3 billion of the notes at a spread of Treasuries plus 60 bps as part of its $12 billion seven-tranche offering priced on Tuesday.

The company's 2.4% notes due 2023 traded better at 60 bps offered, a source said. The bonds were quoted closing on Monday at 64 bps bid, 61 bps offered.

Apple sold $5.5 billion of the notes on April 30, 2013 at Treasuries plus 75 bps.

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

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