An analysis of U.S. dollar-denominated investment-grade technology debt by Bloomberg on Tuesday highlighted a notable tightening in an Oracle bond relative to its industry peers, while several other names in the sector saw spread moves in both directions.
Oracle's 4.5% note due May 6, 2028 yielded 64.7 basis points over Treasuries, based on BVAL data. Measured against the peer group average, that spread was 4.05 standard deviations tighter than the three-month mean, indicating an unusually large compression versus recent relative behavior.
Not all technology issuers moved in the same direction. DXC Technology's 2.375% bond maturing Sept. 15, 2028 yielded 149.3 basis points over Treasuries. Bloomberg's comparison with industry peers shows that spread was 2.68 standard deviations wider than the three-month average, reflecting a meaningful relative widening for that issue.
Oracle registered further relative tightening on another note. Its 6.15% bond due Nov. 9, 2029 carried a spread of 94.8 basis points - a move 3.4 standard deviations tighter compared with the three-month benchmark. That bond traded at a price of $103.121 and recorded trading volume of $6.99 million.
Other corporate bonds in the technology segment also tightened relative to peers. Nvidia's 1.55% bond maturing June 15, 2028 yielded 4.3 basis points above Treasuries, a level 2.8 standard deviations tighter than its three-month average. Dell Technologies' 7.1% bond due April 15, 2028 traded at a 34.5 basis point spread, 2.7 standard deviations tighter.
Among the tighter issues, Salesforce's 5.2% bond maturing March 15, 2033 stood out for trading volume. That bond posted the highest volume among the tightening cohort at $16.18 million and had a spread of 89 basis points.
Bloomberg's analysis covered USD investment-grade debt within the technology sector and used market spread measures relative to U.S. Treasuries and three-month relative-variance metrics to quantify how far individual issues have moved against their peer averages. The moves reported above are specific to the individual bonds cited and to the three-month comparisons described.
Data notes: Yield and spread figures cited are taken from BVAL and Bloomberg's sector comparison for U.S. dollar-denominated investment-grade technology debt.