Morning Commentary: Amgen, Oracle bonds improve in early trade; strong supply on tap for week

By Cristal Cody

Tupelo, Miss., May 4 – New bonds brought by Amgen Inc. and Oracle Corp. continued to recover losses in early trading on Monday, while global trading was light with markets closed in the United Kingdom and Japan.

Looking ahead, a strong week of supply is expected with $35 billion to $40 billion of estimated corporate issuance.

In the secondary market, Oracle’s long bonds (A1/AA-/A+) firmed 1 basis point to 6 bps from Friday’s session.

Amgen’s 3.125% senior notes due 2025 improved 2 bps from trading ahead of the weekend.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 bp tighter at a spread of 63 bps.

The three-month Libor yield was unchanged at 28 bps.

Amgen firms

Amgen’s 3.125% senior notes due 2025 were quoted 2 bps better at 122 bps offered, a source said.

The notes (Baa1/A/BBB) traded in Friday’s session at 124 bps bid.

The company sold $1 billion of the notes on Tuesday at a spread of Treasuries plus 120 bps.

Amgen is a biotechnology company based in Thousand Oaks, Calif.

Oracle improves

Oracle’s 3.25% senior notes due 2030 traded about 1 bp better at 139 bps offered, a market source said.

The notes were quoted at 142 bps bid on Friday.

The company sold $500 million of the notes on Tuesday at Treasuries plus 130 bps.

Oracle’s 4.125% notes due 2045 traded early Monday 6 bps better at 140 bps offered.

The bonds headed out on Friday at 141 bps bid. Oracle sold $2 billion of the bonds on Tuesday at Treasuries plus 145 bps.

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

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