Morning Commentary: High-grade bond spreads stable; Goldman, Oracle notes firm in early trade

By Cristal Cody

Tupelo, Miss., July 2 – Investment-grade bond spreads remained tighter in early trading on Wednesday as desks continue to empty over the short holiday week, according to informed sources.

The Markit CDX North American Investment Grade series 22 index firmed 2 basis points to a spread of 57 bps on Tuesday.

Goldman Sachs Group Inc.’s senior notes (Baa1/A-/A) brought on Monday traded about 4 bps to 5 bps better in the secondary market, a source said.

Oracle Corp.’s notes (A1/A+/A+) that priced on Monday improved about 5 bps from issuance, a market source said.

Goldman tightens

Goldman Sachs’ 3.85% notes due 2024 were quoted early Wednesday at 131 bps offered, according to a market source.

Goldman sold $2.25 billion of the 10-year notes at Treasuries plus 135 bps on Monday.

The company’s tranche of 4.8% notes due 2044 firmed to 145 bps offered, the source said.

Goldman sold $1.75 billion of the 30-year bonds at Treasuries plus 150 bps.

The financial services company is based in New York City.

Oracle firms

Oracle’s 2.25% notes due 2019 firmed 5 bps from issuance to 60 bps offered, a market source said.

Oracle sold $2 billion of the notes at Treasuries plus 65 bps on Monday.

The company’s 3.4% notes due 2024 traded tighter at 85 bps offered, according to the market source.

Oracle sold $2 billion of the 10-year notes at 90 bps over Treasuries.

The computer software and technology company is based in Redwood City, Calif.

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