Morning Commentary: Hewlett-Packard bonds improve; AT&T tightens in early secondary trading

By Cristal Cody

Tupelo, Miss., Oct. 6 – High-grade bonds continued to trade mostly tighter over the morning after improving on Monday.

Hewlett-Packard Enterprise Co.’s senior notes (Baa2/BBB/A-) traded 5 basis points to 8 bps better.

AT&T Inc.’s 2.45% notes due 2020 tightened about 5 bps in early trading.

Over Monday’s session, $13.7 billion of high-grade issues were traded, according to Trace data.

The Markit CDX North American Investment Grade 25 index firmed 5 bps to close on Monday at a spread of 88 bps.

The index has ranged from a low spread of 60.7 bps to a high spread of 94.8 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

Hewlett-Packard firms

Hewlett-Packard Enterprise’s 3.6% notes due 2020 that priced a week ago tightened 5 bps to 211 bps offered, a market source said early Tuesday.

The company sold $3 billion of the notes on Wednesday at a spread of Treasuries plus 225 bps.

The tranche of 4.9% notes due 2025 were quoted 8 bps better from Monday to trade flat from issuance at 290 bps offered. The bonds priced in a $2.5 billion offering on Wednesday at Treasuries plus 290 bps.

Hewlett Packard Enterprise is a Palo Alto, Calif.-based information technology company and subsidiary of the Hewlett-Packard Co.

AT&T tightens

AT&T’s 2.45% notes due 2020 firmed about 5 bps to 135 bps offered in the secondary market, a source said.

The notes headed out unchanged on Monday at 143 bps bid.

AT&T sold $3 billion of the notes (/BBB+/A-) on April 23 at Treasuries plus 110 bps.

The telecommunications company is based in Dallas.

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