Morning Commentary: High-grade bonds modestly better; Anheuser-Busch, Walgreens firm

By Cristal Cody

Eureka Springs, Ark., June 7 – Investment-grade bonds traded modestly better early Tuesday as The Street expects little chance of a summer rate hike following Federal Reserve chairman Janet Yellen’s comments on Monday, sources report.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 remain active in the secondary market and improved about 1 basis point at the start of the day.

Walgreens Boots Alliance Inc.’s 3.45% notes due 2026 firmed 4 bps.

The three-month Libor yield was unchanged at 68 bps.

On Monday, about $13.17 billion of high-grade issues were traded, according to Trace.

Anheuser-Busch improves

Anheuser-Busch InBev’s 3.65% notes due 2026 traded about 1 bp better early Tuesday at 133 bps offered in the secondary market, a source said.

The notes (A3/A-/BBB+) were seen going out on Monday 4 bps softer at 136 bps bid.

Anheuser-Busch InBev sold $11 billion of the bonds on Jan. 13 at a spread of Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

Walgreens tightens

Walgreens’ 3.45% notes due 2026 traded 4 bps better at 161 bps offered, according to a market source.

The notes (Baa2/BBB/BBB) were sold in a $1.9 billion offering on May 26 at Treasuries plus 165 bps.

Walgreens is a Deerfield, Ill.-based drugstore chain.

© 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.