Morning Commentary: Investment-grade trading quiet ahead of Fed statement; Oracle bonds ease

By Cristal Cody

Tupelo, Miss., June 17 – Secondary trading in the high-grade bond market was mostly quiet over the morning as the market waits for the outcome later in the session from the Federal Reserve’s policy meeting, according to sources.

Oracle Corp.’s senior notes (A1/AA-/A+) traded weaker ahead of the company’s fourth-quarter earnings report scheduled for release after the market closes on Wednesday.

The Markit CDX North American Investment Grade series 23 index closed 1 basis point better at a spread of 69 bps on Tuesday.

Oracle eases

Oracle’s 2.9% notes due 2022 were quoted 5 bps weaker early Wednesday at 75 bps offered, according to a market source.

Oracle sold $2.5 billion of the notes on April 28 at a spread of Treasuries plus 80 bps.

The company’s 4.125% bonds due 2045 eased 1 bp to 144 bps offered in the secondary market.

Oracle sold $2 billion of the bonds at Treasuries plus 145 bps in the April 28 offering.

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

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