Morning Commentary: Praxair in pipeline; Home Depot firms; AT&T tightens; credit spreads ease

By Cristal Cody

Tupelo, Miss., Feb. 4 – Primary action in the investment-grade bond market continues to remain light on Thursday with one deal announced over the morning.

Praxair, Inc. is marketing dual currency tranches in an offering of notes due 2024 and 2026.

The company intends to reopen its 3.2% notes due 2026 (A2/A) and price a euro-denominated tranche of notes due 2024.

In the broader high-grade market, new bonds traded mostly tighter in the secondary market and credit spreads opened the day weaker.

Home Depot Inc.’s senior notes (A2/A/A) that priced on Wednesday improved in secondary trading.

AT&T Inc.’s 5.65% bonds due 2047 traded 6 basis points better.

The Markit CDX North American Investment Grade index opened 2 bps weaker at a spread of 110 bps.

The three-month Libor yield was unchanged at 62 bps.

Secondary trading volume fell to $18.28 billion on Wednesday from $19 billion on Tuesday, according to Trace.

Home Depot firms

Home Depot’s 3% notes due 2026 tightened to 116 bps offered in the secondary market, a source said early Thursday.

The company sold $1.3 billion of the notes at a spread of Treasuries plus 120 bps on Wednesday as part of a $3 billion three-part bond offering.

Home Depot is an Atlanta-based home improvement retailer.

AT&T bonds tighten

AT&T’s 5.65% bonds due 2047 firmed 6 bps to 288 bps offered, according to a market source.

The company sold $1.5 billion of the long bonds (Baa1/BBB+/A-) on Friday at Treasuries plus 290 bps.

AT&T is a Dallas-based telecommunications company.

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