Morning Commentary: Oracle mixed at start of short market session; credit spreads improve

By Cristal Cody

Eureka Springs, Ark., July 1 – Investment-grade bonds traded mixed in the secondary market on Friday morning ahead of the early market close.

Oracle Corp.’s senior notes (A1/AA-) sold on Wednesday traded mostly softer to modestly weaker on Friday.

The bond markets are set to close at 2 p.m. ET on Friday and will be closed on Monday for the U.S. Independence Day holiday.

The Markit CDX North American Investment Grade index opened the day about 1 basis point tighter at a spread of 76 bps.

The three-month Libor yield was up 2 bps early Friday to 65 bps.

On Thursday, $19.86 billion of investment-grade issues were traded, up from $17.66 billion on Wednesday, $16.66 billion on Tuesday and $12.70 billion on Monday, according to Trace.

Oracle mixed

Oracle’s 1.9% notes due 2021 eased 2 bps to 82 bps offered, a market source said.

The company sold $4.25 billion of the notes on Wednesday at 90 bps over Treasuries.

Oracle’s 2.65% notes due 2026 traded about 1 bp tighter at 113 bps offered early Friday.

The notes priced in a $3 billion tranche in Wednesday’s sale at Treasuries plus 120 bps.

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

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