Morning Commentary: Credit spreads ease as FOMC meeting begins; Apple bonds mixed

By Aleesia Forni

Virginia Beach, April 28 – Investment-grade credit spreads moved slightly wider early during the session as the Federal Reserve began its two-day policy meeting on Tuesday.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 60 basis points.

Meanwhile, Apple Inc.’s bonds were mixed following the company’s report of a 27% year-over-year growth in revenue earlier this week.

Apple’s 2.5% notes due 2025 traded 1 bp better at 79 bps bid, according to a market source.

Apple sold $1.5 billion of the notes (Aa1/AA+/) on Feb. 2 at Treasuries plus 85 bps.

The company’s 3.45% notes due 2024 (Aa1/AA+/) edged 2 bps wider to 76 bps bid, according to a market source.

Apple sold $2.5 billion of the 10-year notes at a spread of Treasuries plus 77 bps, or 99.916 to yield 3.46%, on April 29, 2014.

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

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