Morning Commentary: High-grade bonds mixed on volatility; Anheuser-Busch active; Visa firms

By Cristal Cody

Tupelo, Miss., Feb. 11 – High-grade bonds were mixed in early secondary trading on Thursday with volatility reigning in the markets as equities slipped and Treasuries gained on the flight to safety, according to market sources.

Anheuser-Busch InBev Finance Inc.’s senior notes (A2/A-) remain active but traded 2 basis points weaker to 3 bps tighter.

Visa Inc.’s 3.15% senior notes due 2025 opened about 1 bp tighter.

The three-month Libor yield was stable at 62 bps.

In the previous session, about $16.8 billion of high-grade issues were traded, up slightly from $16.15 billion of bonds traded on Tuesday, according to Trace.

Anheuser-Busch mixed

Anheuser-Busch’s 3.65% notes due 2026 eased 2 bps to 166 bps offered in early secondary trading, according to a market source.

The company sold $11 billion of the notes on Jan. 13 at a spread of Treasuries plus 160 bps.

The tranche of 4.9% notes due 2046 traded 3 bps tighter at 194 bps offered over the morning.

Anheuser-Busch sold $11 billion of the bonds in the Jan. 13 sale at Treasuries plus 205 bps.

The brewery is based in Leuven, Belgium.

Visa improves

Visa’s 3.15% notes due 2025 headed out 3 bps tighter on Wednesday and traded about 1 bp better early Thursday at 110 bps offered, a market source said.

The notes traded late afternoon in the previous session at 113 bps bid.

The company sold $4 billion of the bonds (A1/A+) on Dec. 9 at Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

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