Morning Commentary: Starbucks in deal line-up; Anheuser-Busch mixed; Libor yield down

By Cristal Cody

Tupelo, Miss., Feb. 1 – High-grade primary action on Monday is expected to include an offering of senior notes (//A) from Starbucks Corp.

Bonds opened the first session of February mixed in early secondary trading.

Anheuser-Busch InBev Finance Inc.’s senior notes (A2/A-), which were placed in January in a $46 billion deal to help fund its acquisition of SABMiller, traded mostly flat to modestly softer.

The three-month Libor yield was down 1 basis point at 61 bps at the start of the day.

Secondary trading volume remained strong on Friday with about $19.4 billion of investment-grade issues traded, according to Trace.

Anheuser-Busch mixed

Anheuser-Busch’s 2.65% notes due 2021 firmed about 1 bp to 115 bps offered, a market source said.

The five-year notes priced in a $7.5 billion tranche at Treasuries plus 120 bps on Jan. 13.

Anheuser-Busch’s 3.65% notes due 2026 were unchanged on Monday at 157 bps offered.

The company sold $11 billion of the 10-year notes in the Jan. 13 sale at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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