A Bond Market Twist
The WSJ is reporting (may require subscription) that some ExxonMobil and Johnson & Johnson bonds are trading at a lower yield than comparable treasuries.
Bonds of Exxon coming due in 13 months were quoted on Tuesday at 0.01 percentage point less than the comparable Treasury, according to Benchmark Solutions, a pricing service. Bonds of Johnson & Johnson due in May 2014 also recently traded at 0.01 percentage point less than Treasurys.
Of course, XOM and JNJ sport something treasuries lost a while back, AAA credit ratings.
No postion in XOM or JNJ.