Industrial metals rally; energy names bounce; Sprint debt rolls on preliminary results

By Colin Hanner and Paul A. Harris

Chicago, Oct. 18 – Rallying cries for some high yield bonds were met with news coming out of early quarterly releases, a newly released index that stirred speculation about inflationary measures by the end of the year and industrial metal sector news that spilled over into the market.

“Metals and mining were the best performers today,” a market source said.

Australian thermal coal spot prices hit $100 per ton for the first time in four years, and industrial metals surged as $255 billion in Chinese financing exceeded expectations and the dollar weakened for the second-consecutive day.

Metals names were trending higher.

AK Steel Holding Corp.’s 7 5/8% notes due 2020 were up a ½ point to 97. The West Chester, Ohio-based steel company will announce its quarterly earnings on Oct. 25.

Freeport-McMoRan Inc. 3.55% notes due 2022 were “very active, but unchanged on the day,” finishing at 91, a trader said.

Per an 8-K filing with the Securities and Exchange Commission, Sprint Corp. released preliminary financial results for the second fiscal quarter Tuesday.

The company’s total net operating revenues of $8.25 billion grew 3% year-over-year, and wireless net operating revenues totaling $7.85 billion grew nearly 5% year-over-year.

Sprint’s 7 1/8% notes due 2024 were active and traded down a ¼ point to 97½, a trader confirmed. The 7% notes due 2020 traded up 1 to 103½, and the 7 7/8% notes due 2023 were down ¼ were down to 101 5/8.

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