Midday Commentary: Investment-grade bonds open 'tad' weaker; Crane tightens in trade

By Cristal Cody

Tupelo, Miss., Dec. 11 - Investment-grade bond spreads opened slightly weaker on Wednesday after the primary market saw strong demand for new issues in the previous session, according to informed sources.

The Markit CDX North American Investment Grade series 21 index eased 1 basis point on Tuesday to a spread of 68 bps.

"Spreads look to be a tad wider," a trader said early Wednesday.

Crane Co.'s $550 million offering of senior notes in five-year and 10-year tranches tightened in secondary trading early Wednesday after the issues saw heavy investor demand in the primary market, sources said.

The order book for the $550 million deal was $6 billion, a market source said.

Crane's 2.75% notes due 2018 tightened to 119 bps bid in the morning session, a trader said.

The issue headed out on Tuesday at 120 bps bid, 117 bps offered.

Crane, a Stamford, Conn.-based manufacturer of engineered industrial products, sold $250 million of the five-year notes with a spread of Treasuries plus 130 bps.

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