Morning Commentary: High-grade bond spreads softer at open; Hewlett-Packard notes widen

By Cristal Cody

Tupelo, Miss., Oct. 7 – Investment-grade bond spreads remained soft over the morning after widening in Monday’s session, sources said.

The Markit CDX North American Investment Grade series 22 index eased to a spread of 68 basis points on Monday from a spread of 59 bps on Friday.

Hewlett-Packard Co.’s notes widened in secondary trading following the company’s announcement on Monday that it will split into two publicly traded companies, a source said.

Hewlett-Packard’s 6% global notes due 2041 eased more than 10 bps in secondary trading, the market source said.

Hewlett-Packard widens

Hewlett-Packard’s 6% global notes due 2041 widened 12 bps to 197 bps offered, a source said early Tuesday.

The notes traded over the morning in the 113.00 area, according to a market source.

Hewlett-Packard sold $1.2 billion of the global notes on Sept. 13, 2011 at 99.863 to yield 6.01%, or a spread of 270 bps over Treasuries.

The computer technology and software company is based in Palo Alto, Calif.

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