Morning Commentary: Coca-Cola notes tighten; Microsoft paper softens; Libor yield rises

By Cristal Cody

Eureka Springs, Ark., Sept. 1 – Investment-grade bonds were mixed in the secondary market early Thursday.

Coca-Cola Co.’s notes (Aa3/AA-/A+) that priced on Monday improved after softening following issuance. The 10-year notes were seen 5 basis points better early Thursday.

Microsoft Corp.’s 2.4% senior notes due 2026 eased 2 bps in secondary trading.

The three-month Libor yield rose 1 bp to 84 bps on Thursday.

Secondary trading volume has stayed strong over the week with $16.8 billion of investment-grade issues traded on Wednesday, up from $15.4 billion on Tuesday and $14.5 billion on Monday, according to Trace.

Coca-Cola firms

Coca-Cola’s 2.25% notes due 2026 traded 5 bps tighter early Thursday at 66 bps offered, according to a market source.

The 10-year notes were sold in a $1 billion tranche on Monday at a spread of 70 bps over Treasuries.

Coca-Cola is an Atlanta-based beverage company.

Microsoft eases

Microsoft’s 2.4% notes due 2026 eased 2 bps to 78 bps offered in the secondary market, a source said.

The company sold $4 billion of the notes (Aaa/AAA) on Aug. 1 at 90 bps over Treasuries.

The computer software company is based in Redmond, Wash.

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