Morning Commentary: High-grade bond spreads steady; eBay firms; Pfizer mostly unchanged

By Cristal Cody

Tupelo, Miss., July 29 – Investment-grade bond spreads opened the session mostly unchanged as the market focuses on the two-day Federal Reserve policy meeting that ends on Wednesday, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 60 bps on Monday.

In the secondary market, eBay Inc.’s 3.45% senior notes due 2024, wider on Monday, tightened in early trading, a market source said.

Pfizer Inc.’s 4.4% senior notes due 2044 that were sold in May tightened 1 bp but remain wrapped around issuance, according to a market source.

eBay firms

eBay’s 3.45% notes due 2024 (A2/A/A) tightened 4 bps to 101 bps offered, according to a market source.

The notes traded late Monday afternoon at 105 bps, a market source said.

The company sold $750 million of the notes at Treasuries plus 100 bps on Wednesday.

The global online commerce and payments platform company is based in San Jose, Calif.

Pfizer edges tighter

Pfizer’s 4.4% bonds due 2044 (A1/AA/) firmed 1 bp to 95 bps offered, a market source said.

The company sold $500 million of the bonds on May 12 with a spread of Treasuries plus 95 bps.

The biopharmaceutical company is based in New York City.

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