Morning Commentary: Hewlett-Packard notes trade flat to tighter; Wells Fargo paper improves

By Cristal Cody

Tupelo, Miss., Oct. 8 – High-grade bonds stayed mostly better over the morning ahead of expected primary action later in the session on Thursday.

Hewlett-Packard Enterprise Co.’s senior notes (Baa2/BBB/A-) traded flat to 5 basis points tighter.

Wells Fargo & Co.’s 3.55% senior holding company notes due 2025 tightened 4 bps.

Secondary trading was strong over Wednesday’s session with $17.29 billion of investment-grade issues traded, up from $15.67 billion on Tuesday, according to Trace.

The Markit CDX North American Investment Grade 25 index ended the previous session 3 bps tighter at a spread of 84 bps.

Hewlett-Packard mostly better

Hewlett-Packard Enterprise’s 3.6% notes due 2020 traded 5 bps tighter at 204 bps offered, a market source said.

The notes priced in a $3 billion offering on Sept. 30 at Treasuries plus 225 bps.

The company’s 4.9% notes due 2025 were unchanged at 289 bps offered in the secondary market.

Hewlett-Packard Enterprise sold $2.5 billion of the notes at Treasuries plus 290 bps in the Sept. 30 offering.

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

Wells Fargo firms

Wells Fargo’s 3.55% notes due 2025 improved 4 bps in the secondary market to 137 bps offered, according to a market source.

Wells Fargo sold $2.55 billion of the notes (A2/A+/AA-) on Sept. 21 at 137.5 bps over Treasuries.

The bank is based in San Francisco.

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