MARKET TALK: BP Bonds Rally On Pimco, Div Cut

16th Jun 2010 20:10

1908 GMT [Dow Jones] Buyers are pushing down bond yields for BP debt following a "buy" endorsement by Pimco chief Bill Gross on CNBC and BP's announcement that it will cut a previously declared 1Q dividend and dividends for rest of the year. The yield on BP's most-traded issue, 5.250% of 2013, was down 9BP to 8.286% as of 2:40 p.m. EDT, according to MarketAxess. Traders sold-off BP bonds early, pushing the 2013 note's yield as high as 9.865%, but the oil giant's agreement to put $20B in escrow sparked a debt an afternoon rally perpetuated by Gross' comments. ([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 16, 2010 15:10 ET (19:10 GMT)