Primary activity quiets ahead of holiday; credit spreads firm; AT&T tightens; Oracle mixed

By Cristal Cody

Eureka Springs, Ark., July 1 – Investment-grade primary action stayed quiet on Friday with most desks lightly staffed for the short session and ahead of the long holiday weekend.

The week saw more than $28 billion of new bonds price, and volume is forecast to stay strong in the upcoming four-day work week, according to a market source.

The bonds markets will be closed on Monday for the July 4th holiday.

Credit spreads tightened before the early market close. The Markit CDX North American Investment Grade index headed out 3 basis points better at a spread of 74 bps.

AT&T Inc.’s 4.125% notes due 2026 (Baa1//A-) firmed 3 bps by early afternoon on Friday to 174 bps bid, according to a market source.

The company sold a $900 million reopening of the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion offering at 195 bps over Treasuries.

Oracle Corp.’s new senior notes (A1/AA-/) were mixed.

The company’s 1.9% notes due 2021 eased 2 bps to 82 bps offered earlier in the day, a market source said.

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

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