How do the yields on the 4.150 % 2028 notes and 5.000 % 2035 notes compare to current market rates for comparable senior debt?

Yield versus market – quick take:

• 4.150 % senior notes due 2028 – At a 4.15 % coupon, the effective yield on these notes is a few‑basis‑points below the current market price for comparable investment‑grade senior debt with 5‑year‑to‑maturity horizons (which is hovering around 4.3‑4.5 % for similarly rated issuers). The slight discount to market yields makes the 2028 tranche relatively cheap and attractive for investors seeking a near‑term, low‑duration exposure.

• 5.000 % senior notes due 2035 – The 5 % coupon is essentially in line with the prevailing 10‑year‑plus senior‑debt benchmark (roughly 5.1‑5.3 % for comparable credit quality). The slight “tightness” versus the market suggests the 2035 tranche is priced at a modest premium (or very close to parity) with current yields, offering a modest premium over the 2028 issue but still competitive given its longer duration.

Trading implications: The 2028 notes are priced a touch tighter than market, indicating they may be oversubscribed and could trade a few basis points above par in the secondary market, providing a modest upside if yields rise. Conversely, the 2035 series is priced near parity; its longer duration makes it more sensitive to rate moves—if Treasury yields or corporate spreads tighten further, the 2035 notes could see modest price appreciation, but they will also penalize more if rates rise. A short‑duration, low‑beta trade (buy the 2028 notes at a small discount or hold through settlement) is a low‑risk way to capture a modest spread, while the 2035 issue is better suited to a “carry‑and‑sell‑if‑rates‑rise” approach: hold for the coupon if you expect rates to stay stable, but consider hedging the duration risk if you anticipate a rise in long‑term rates.