Morning Commentary: Investment-grade bond market activity thins; AutoZone modestly softer

By Cristal Cody

Tupelo, Miss., April 12 – Activity in the investment-grade bond market continued to thin on Wednesday.

No U.S. issuers were reported early in the day’s deal pipeline for the last full session of the week.

About $10 billion of weekly deal volume was expected by syndicate sources.

More than $6 billion of high-grade bonds priced on Monday and Tuesday.

The bond markets will close early on Thursday and will be closed for the full day on Friday for the Good Friday holiday.

In the secondary market as the session got underway, AutoZone, Inc.’s 3.75% senior notes due June 1, 2027 that priced a week ago traded modestly softer but remain better than issuance.

The three-month Libor yield was unchanged over the morning at 1.16%.

Secondary market volume totaled $16.04 billion on Tuesday, up from $13.12 billion on Monday, according to Trace.

AutoZone softens

AutoZone’s 3.75% senior notes due June 1, 2027 that priced a week ago softened on Wednesday to 100.65 from where the notes went out on Tuesday at 100.70, a market source said.

AutoZone (Baa1/BBB/BBB) sold $600 million of the notes on April 6 at 99.995 to yield 3.75% and a spread of 140 basis points over Treasuries.

AutoZone is a Memphis-based auto parts and supplies retailer.

© 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.