Morning Commentary: Investment-grade market activity light; Bank of America soft; Apple flat

By Cristal Cody

Tupelo, Miss., Jan. 5 – Activity in the investment-grade bond market was quiet early Monday with bonds mostly unchanged to softer as market participants returned from holiday vacations and focused on catching up, informed sources said.

Bank of America Corp.’s 4% notes due 2024 eased 1 to 2 basis points from Friday, according to a market source.

Apple Inc.’s 3.45% notes due 2024 traded mostly flat, a source said.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 bp weaker at a spread of 67 bps.

Bank of America eases

Bank of America’s 4% notes due 2024 (Baa2/A-/A) traded early Monday 1 bp to 2 bps wider at 132 bps bid, a market source said.

The paper was quoted in mid-December weaker at 146 bps bid.

Bank of America sold $2.75 billion of the notes on March 27 at a spread of Treasuries plus 137 bps.

The financial services company is based in Charlotte, N.C.

Apple stable

Apple’s 3.45% notes due 2024 (Aa1/AA+/) opened the session mostly unchanged at 69 bps bid, according to a market source.

Apple sold $2.5 billion of the notes at Treasuries plus 77 bps on April 29.

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

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