Morning Commentary: Investment-grade bond spreads stable; Apple, Oracle tighten

By Cristal Cody

Tupelo, Miss., July 23 – Investment-grade bond spreads held steady early Wednesday with corporate bonds mostly tighter in secondary trading, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed less than 1 basis point in the previous session to end unchanged at a spread of 59 bps.

Trading volume picked up in Apple Inc.’s 3.45% notes due 2024, which traded about 4 bps tighter, a source said.

Oracle Corp.’s 4.3% senior notes due 2034 have firmed about 6 bps from where the notes priced in late June, according to a market source.

Apple firms

Apple’s 3.45% notes due 2024 (Aa1/AA+/) firmed about 4 bps to 74 bps offered, a market source said.

The notes rose to 103.83 to yield 2.994% in early trading from 102.06 to yield 3.202% on Tuesday, according to a market source.

Apple priced $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.

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

Oracle tightens

Oracle’s 4.3% notes due 2034 (A1/A+/A+) traded 4 bps better at 89 bps offered, a market source said.

The issue edged lower to 102.23 to yield 4.132% over the morning from where the notes last traded at 102.26 to yield 4.13% on Tuesday, a source said.

Oracle sold $1.75 billion of the 20-year notes at Treasuries plus 95 bps, or 99.96 to yield 4.303%, on June 30.

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

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