Morning Commentary: High-grade market quiet; traders focus on jobs report; Oracle firms

By Cristal Cody

Tupelo, Miss., July 3 – The investment-grade bond market remained little changed over the morning on Thursday ahead of the early holiday market close as traders focused on the Labor Department’s June jobs report, sources said.

The Markit CDX North American Investment Grade series 22 index closed flat on Wednesday at a spread of 57 basis points.

The bond markets will close at 2 p.m. ET on Thursday and will close for a full day on Friday for the Independence Day holiday.

The Labor Department reported on Thursday that total nonfarm payroll employment increased by 288,000 in June.

The U.S. unemployment rate dropped 0.2% to 6.1% in June, the lowest since September 2008.

June saw about $143 billion of investment-grade bond issuance, the second highest volume month of the year, according to a market source.

Oracle Corp.’s $10 billion seven-part offering of senior notes (A1/A+/A+) brought on Monday accounted for much of the week’s high-grade issuance, a source said.

In the secondary market, Oracle’s 4.3% notes due 2034 traded nearly 10 bps tighter, according to a market source.

Oracle firms

Oracle’s 4.3% notes due 2034 tightened to 86 bps offered, a source said early Thursday.

Oracle sold $1.75 billion of the 20-year notes at Treasuries plus 95 bps on Monday.

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

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