Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Oracle Corp. > News item |
Market tone positive following Fed rate hike; Oracle tightens; AT&T mixed
By Aleesia Forni and Cristal Cody
New York, Dec. 16 - Investment-grade bonds were better on Wednesday as the Federal Reserve raised interest rates for the first time in nearly a decade, signaling confidence in the U.S. economy.
Following the conclusion of its two-day policy meeting, the Federal Open Market Committee voted unanimously to hike its key interest rate from a range of 0% to 0.25% to a range of 0.25% to 0.5%, a move that was widely expected.
The Fed added that any further rate increases would come gradually.
The typically quiet FOMC statement day, coupled with the late-year holiday lull, kept primary activity at bay during the session.
Still, the market reacted positively to the statement, a market source said, with credit spreads tightening modestly following the announcement after making a volatile start to the week.
But the positive tone is unlikely to be enough to persuade any opportunistic issuer to price a new offering prior to the end of the year.
Oracle Corp.’s senior notes (A1/AA-/A+) firmed 1 bp to 4 bps ahead of the release of the company’s fiscal second quarter earnings results after the market closed.
AT&T Inc.’s notes (/BBB+/A-) traded flat to tighter over the day.
Citigroup Inc.’s 2.65% notes due 2020 were unchanged in secondary trading.
JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 tightened 3 bps.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.