Morning Commentary: Coca-Cola unchanged; Libor yield stable; secondary trading volume drops

By Cristal Cody

Eureka Springs, Ark., Sept. 2 – Investment-grade bonds were mixed in the secondary market early Friday, while traders focused on the Labor Department’s August jobs report and staffing thinned for the long holiday weekend.

The Labor Department reported that non-farm payrolls rose 151,000 in August, much lower than the 180,000 forecasted. The unemployment rate was unchanged from July at 4.9%, higher than market expectations of 4.8%.

Pricing action on Friday is expected to include a senior notes offering from Verizon Communications Inc.

The three-month Libor yield was steady at 84 basis points on Friday.

In the secondary market, Coca-Cola Co.’s notes (Aa3/AA-/A+) traded mostly unchanged at the start of the day.

Secondary trading volume fell to $12.7 billion on Thursday, compared to $16.8 billion on Wednesday, $15.4 billion on Tuesday and $14.5 billion on Monday, according to Trace.

Coca-Cola steady

Coca-Cola’s 2.25% notes due 2026 were unchanged in the secondary market early Friday at 68 bps bid, according to a market source.

The notes headed out on Thursday at 68 bps bid, 65 bps offered.

Coca-Cola sold $1 billion of the notes on Monday at a spread of 70 bps over Treasuries.

The beverage company is based in Atlanta.

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