Midday Commentary: Investment-grade bonds stable; Eli Lilly notes firm; Google trades flat

By Cristal Cody

Tupelo, Miss., Feb. 24 - Investment-grade bonds opened mostly unchanged ahead of an expected busy primary market for the day and week, according to informed sources on Monday.

Corporate issuance for the week is estimated at $30 billion to $40 billion, RBC Capital Markets, LLC analysts said in a note.

"There are already whispers that a massive TMT [deal] is in the works that could withdraw in excess of $10 billion from the market via multiple tranches," the note said.

The Markit CDX North American Investment Grade series 21 index ended Friday unchanged at a spread of 65 basis points.

In the secondary bond market, Eli Lilly & Co.'s 1.95% senior notes due 2019 firmed in early trading, a source said.

Google Inc.'s 3.375% senior notes 2024 were flat, according to market sources.

Eli Lilly firms

Eli Lilly's 1.95% notes due 2019 (A2/AA- /) traded better at 36 bps bid, according to a market source.

The company sold $600 million of the seven-year notes on Thursday at a spread of Treasuries plus 45 bps in a $1 billion two-part note offering.

The pharmaceutical products company is based in Indianapolis.

Google flat

Google's 3.375% notes 2024 (Aa2/AA/) traded unchanged from Friday at 100.17, or 62 bps bid, according to market sources.

Google sold $1 billion of the notes at 99.983 to yield 3.377%, or a spread of Treasuries plus 62.5 bps, on Thursday.

The technology company is based in Mountain View, Calif.

© 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.