Morning Commentary: Time Warner bonds ease, Toyota Motor Credit stable in early trade

By Cristal Cody

Tupelo, Miss., July 17 – The investment-grade corporate bond market stayed focused early Thursday on a round of economic data that included initial jobless claims, market sources said.

The Labor Department reported initial unemployment claims for the week ended July 12 fell 3,000 from the previous week to 302,000.

In early trading, Time Warner Inc.’s long bonds eased following reports on Wednesday that the company rebuffed a takeover offer by Rupert Murdoch’s 21st Century Fox Inc., a source said.

Toyota Motor Credit Corp.’s 2.125% notes due 2019 were unchanged over the morning but tighter than where the bonds priced on Tuesday, a source said.

The Markit CDX North American Investment Grade series 22 index closed on Wednesday 1 basis point tighter at a spread of 57 bps.

Time Warner eases

Time Warner’s 4.65% senior notes due 2044 (Baa2/BBB/BBB+) eased 3 bps to 148 bps offered, a market source said.

The bonds were seen opening the session at 97.83 to yield 4.787%, up from 97.28 to yield 4.822% on Wednesday, a source said.

Time Warner sold $600 million of the 30-year notes at Treasuries plus 135 bps, or 98.93 to yield 4.717%, on May 20.

The media and entertainment company is based in New York.

Toyota Motor Credit flat

Toyota Motor Credit’s 2.125% medium-term notes due 2019 (Aa3/ AA-/) traded flat at 44 bps offered, a market source said.

The notes priced in a $1.25 billion offering on Tuesday at Treasuries plus 50 bps.

Toyota Motor Credit, the U.S. funding arm of Toyota Motor Corp., is based in Torrance, Calif.

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