Morning Commentary: Investment-grade bonds soften; Aetna widens; Anheuser-Busch eases

By Cristal Cody

Eureka Springs, Ark., June 14 – Investment-grade bonds remained mostly soft in the secondary market over the morning on Tuesday ahead of the start of the Federal Reserve’s two-day policy meeting.

Aetna Inc.’s 4.375% senior notes due 2046 eased 4 basis points to trade 5 bps wider than where the bonds priced earlier in the month.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out 2 bps weaker on Monday and were quoted 3 bps softer early Tuesday.

The three-month Libor yield was steady at 66 bps.

On Monday, $10.5 billion of high-grade issues were traded, according to Trace.

Aetna eases

Aetna’s 4.375% notes due 2046 traded 4 bps weaker at 185 bps offered, according to a market source.

Aetna sold $2.4 billion of the bonds (Baa2/A/A-) on June 2 at 180 bps over Treasuries.

The diversified health care benefits company is based in Hartford, Conn.

Anheuser-Busch softens

Anheuser-Busch InBev’s 3.65% notes due 2026 traded 3 bps weaker at 133 bps offered, a market source said.

The notes headed out on Monday 2 bps softer at 137 bps bid.

Anheuser-Busch InBev sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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