Morning Commentary: Oracle, Goldman plan deals; Monsanto active, BHP firms in quiet market

By Cristal Cody

Tupelo, Miss., June 30 – The investment-grade bond market was mostly quiet early Monday in front of expected supply from companies including Goldman Sachs Group, Inc. and Oracle Corp., according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 58 bps on Friday.

Monsanto Co.’s bonds remain active after the issues traded heavily on Friday, according to a market source.

Secondary activity also picked up in BHP Billiton Finance (USA) Ltd.’s 5% bonds due 2043, which firmed about 3 bps, a source said.

Monsanto trades

Monsanto’s 4.4% senior notes due 2044, the highest volume bond on Trace on Friday, were quoted at 108 bps offered early Monday, according to a market source.

Monsanto sold $1 billion of the bonds (A3/BBB+/A-) at Treasuries plus 110 bps as part of its $4.5 billion seven-part deal priced on Thursday.

The agricultural company is based in St. Louis.

BHP firms

BHP Billiton Finance’s 5% bonds due 2043 (A1//A+) traded about 3 bps tighter at 100 bps offered early Monday, according to a market source.

BHP sold $2.5 billion of the bonds at Treasuries plus 130 bps on Sept. 25.

The company is a subsidiary of Melbourne, Australia-based natural resources developer BHP Billiton Ltd.

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