Morning Commentary: Microsoft bonds flat to tighter in secondary market; Wells Fargo firms

By Cristal Cody

Tupelo, Miss., Nov. 3 – Microsoft Corp.’s new senior notes (Aaa/AAA/AA+) remain active and traded flat to tighter in the secondary market early in the session on Tuesday.

Wells Fargo & Co.’s 3.55% senior holding company notes due 2025 were quoted 6 basis points better in secondary trading.

The Markit CDX North American Investment Grade 25 index was mostly unchanged early Tuesday at a spread of 77 bps.

The high-grade index has ranged from a low spread of 60.7 bps to a high spread of 94.8 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

Microsoft steady

Microsoft’s 3.125% notes due 2025 traded unchanged over the morning at 83 bps offered, according to a market source.

The company sold $3 billion of the notes on Thursday at a spread of Treasuries plus 95 bps.

Microsoft’s 4.45% bonds due 2045 were stable at 141 bps offered in the secondary market.

The bonds priced in a $3 billion tranche in Thursday’s sale at 150 bps over Treasuries.

The computer software company is based in Redmond, Wash.

Wells Fargo firms

Wells Fargo’s 3.55% notes due 2025 were seen 6 bps tighter at 129 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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