Morning Commentary: High-grade bonds trade mostly better; BNP, Hewlett-Packard firm

By Cristal Cody

Tupelo, Miss., Oct. 7 – Market sentiment remained better early Wednesday with investment-grade bonds trading mostly tighter.

BNP Paribas SA’s 4.375% tier 2 subordinated notes due 2025 improved 4 basis points in the secondary market but remain weaker than issuance.

Hewlett-Packard Enterprise Co.’s 3.6% senior notes due 2020 firmed 2 bps.

In Tuesday’s session, $15.67 billion of Investment-grade bonds were traded, up from $13.7 billion on Monday, according to Trace.

The Markit CDX North American Investment Grade 25 index firmed 1 bp to close the previous session at a spread of 87 bps.

BNP Paribas better

BNP Paribas’ 4.375% notes due 2025 were seen 4 bps tighter at 257 bps offered, a market source said.

BNP Paribas sold $1 billion of the notes (Baa2/BBB/A) on Sept. 21 at a spread of 230 bps over Treasuries.

The financial services company is based in Paris.

Hewlett-Packard firms

Hewlett-Packard Enterprise’s 3.6% notes due 2020 firmed 2 bps to 209 bps offered, a market source said.

The company sold $3 billion of the notes (Baa2/BBB/A-) on Sept. 30 at Treasuries plus 225 bps.

Hewlett Packard Enterprise is a Palo Alto, Calif.-based information technology company and subsidiary of the Hewlett-Packard Co.

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