Midday Commentary: Investment-grade bonds open unchanged; Berkshire Hathaway notes rise

By Cristal Cody

Tupelo, Miss., Oct. 15 - Investment-grade bonds opened on Tuesday "pretty strong" but mostly flat from Friday's session following the market holiday on Monday, a trader said.

"Yesterday, the bond market was closed," the trader said. "Today, it's overall generally unchanged."

In the secondary market, Duke Energy Corp.'s 3.95% notes due 2023 traded slightly weaker since the issue priced a week ago.

Berkshire Hathaway Finance Corp.'s 2.9% senior notes due 2020, priced during the same session as Duke Energy's issue, traded higher, a source said.

The Markit CDX North American Investment Grade series 21 index ended Friday 2 basis points tighter to a spread of 77 bps.

Duke Energy lower

Duke Energy's 3.95% notes due 2023 (Baa1/BBB/BBB+) traded early Tuesday at 99.5 bid, 100.5 offered, a trader said.

The company sold $400 million of the notes at 99.795 to yield 3.975% on Oct. 8.

Duke Energy is a diversified energy company based in Charlotte, N.C.

Berkshire rises

In other trading, Berkshire Hathaway's 2.9% senior notes due 2020 (Aa2/AA/) rose to par bid, 101 offered, a trader said early Tuesday.

The company sold $550 million of the notes on Oct. 8 at 99.805 to yield 2.931%.

The firm is a subsidiary of Omaha-based holding company Berkshire Hathaway Inc.

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