Morning Commentary: Investment-grade bonds improve; Oracle stronger in secondary market

By Cristal Cody

Eureka Springs, Ark., July 5 – Investment-grade bonds traded mostly tighter early Tuesday following the long holiday weekend, while credit spreads softened as the session got underway.

Oracle Corp.’s new senior notes (A1/AA-) tightened about 5 basis points to 20 bps in the secondary market from Friday.

The bond markets closed early on Friday and were closed on Monday for the U.S. Independence Day holiday.

The three-month Libor yield was unchanged over the morning at 65 bps.

Credit spreads weakened from Friday. The Markit CDX North American Investment Grade index was seen about 5 bps softer at a spread of 79 bps.

The main focus of the week is expected to be the release of minutes from the Federal Reserve’s June policy meeting on Wednesday and the June jobs report due on Friday, according to market sources.

Oracle tightens

Oracle’s 1.9% notes due 2021 were quoted 5 bps better than where the notes traded on Friday at 77 bps offered early Tuesday, a market source said.

The company sold $4.25 billion of the notes on Wednesday at 90 bps over Treasuries.

Oracle’s 2.65% notes due 2026 traded about 8 bps tighter from Friday at 107 bps offered in the secondary market.

The notes priced in a $3 billion tranche in Wednesday’s sale at Treasuries plus 120 bps.

The computer software and technology company is based in Redwood City, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.