Morning Commentary: Spreads firm following earlier weakness; Apple bonds mixed in secondary

By Aleesia Forni

Virginia Beach, April 30 – High-grade bond spreads firmed to open the session on Thursday following weakness earlier this week.

The Markit CDX North American Investment Grade series 23 index was 1 basis point tighter at a spread of 61 basis points.

Meanwhile, Apple Inc.’s bonds were mixed in the secondary market following the company’s announcement on Monday that it will continue to access the domestic and international debt markets to fund its expanded capital return program.

Apple’s 2.5% notes due 2025 traded unchanged at 87 bps bid, according to a market source.

Apple sold $1.5 billion of the notes (Aa1/AA+/) on Feb. 2 at Treasuries plus 85 bps.

The company’s 3.45% notes due 2024 (Aa1/AA+/) edged 1 bp wider to 77 bps bid, according to a market source.

Apple sold $2.5 billion of the 10-year notes at a spread of Treasuries plus 77 bps on April 29, 2014.

Meanwhile, its $1.5 billion of 1.05% notes due 2017 traded 3 bps tighter at 18 bps bid.

The notes priced at 18 bps over Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

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