(Bloomberg) — Apple Inc. is selling debt in the US blue-chip bond market Monday as a flood of borrowers look to raise cash before key inflation readings are released later this week.
The $5 billion deal is expected to come in as many as five parts, according to a person familiar with the matter. The longest portion, a 30-year bond, could yield 135 basis points over comparable Treasuries, the person said.
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The U.S. midterm elections sparked declines for shares of large U.S. technology companies and oil prices that fueled gains for U.S. government bonds, sending yields to the lowest levels since early September.
A split Congress has often been a bullish recipe for Treasuries. Benchmark 10-year yields have been lower on average one and 12 months after midterms that produced such a result.
Morgan Stanley this month has struggled to attract demand for a $301 million commercial real estate bond tied to a data center in Kansas City.
The risk stems from the way traders provide the bonds that are delivered when futures contracts are settled.
Thirty-year bonds wiped out an early loss to advance on Thursday, with yields down a basis point to 5.66% — just off their highest levels since 2002.
