Morning Commentary: Investment-grade bonds mixed; Kraft Heinz, Barclays long bonds ease

By Cristal Cody

Tupelo, Miss., Aug. 31 – Bonds were mixed in the high-grade market at the start of the last full week of trading before the Labor Day holiday.

Kraft Heinz Co.’s 5.2% bonds due 2045 traded about 1 basis point softer.

Barclays plc’s 5.25% senior notes due 2045 eased 2 bps in secondary trading.

The three-month Libor yield was up 1 bp at 33 bps early Monday.

The Markit CDX North American Investment Grade index closed on Friday 1 bp wider at a spread of 80 bps.

Kraft Heinz eases

Kraft Heinz’s 5.2% bonds due 2045 traded about 1 bp wider at 194 bps offered, a market source said.

Heinz sold $2 billion of the notes (Baa3/BBB-) on June 23 at a spread of Treasuries plus 155 bps ahead of the company’s merger with Kraft in July.

The combined food and beverage company is based in Pittsburgh and Northfield, Ill.

Barclays soft

Barclays’ 5.25% notes due 2045 eased 2 bps to 232 bps offered, according to a market source.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

The financial services company is based in London.

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