Morning Commentary: Investment-grade primary market action lightens; Apple notes mixed

By Cristal Cody

Tupelo, Miss., Feb. 10 – Activity slowed in the investment-grade bond market as Friday’s session got underway following a week that included deals from Wells Fargo & Co., Discover Financial Services, Estee Lauder Cos. Inc., Tennessee Valley Authority, MPLX LP and BP Capital Markets plc.

The three-month Libor yield dropped 1 basis point to 1.03% over the morning, a market source said.

Apple Inc.’s notes (Aa1/AA+) that priced a week ago were mixed in early secondary trading, with the long bonds stronger.

High-grade secondary market volume thinned to $18.36 billion on Thursday from $22.1 billion on Wednesday, according to Trace.

Apple mixed

Apple’s 3.5% notes due Feb. 9, 2027 weakened in early secondary trading on Friday to 100.68 from where the notes headed out on Thursday at 101.35, according to a market source.

The company sold $2.25 billion of the notes on Feb. 2 at par, or a spread of Treasuries plus 88 bps.

Apple’s 4.25% notes due Feb. 9, 2047 improved to 102 as the market opened from 101.32 on Thursday.

The bonds priced on Feb. 2 in a $1 billion tranche at 99.798 to yield 4.262%, or Treasuries plus 115 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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