Primary pauses to close $64 billion week; Energy Transfer bonds firm in secondary

By Aleesia Forni

Virginia Beach, March 6 – The primary market paused on Friday to focus on the release of the nonfarm payrolls data, closing a frenzied week for investment-grade bonds.

The report comes at the heels of the busiest week of the year for the high-grade bond market, which hosted roughly $64 billion of supply to kick off the month of March.

Meanwhile, Lipper reported inflows of $1.638 billion into corporate high-grade bond funds for the week ended March 4.

The total was up from last week’s inflows of $1.318 billion, bringing the year-to-date total inflows to $21.122 billion.

Around $25 billion to $30 billion of new issuance is expected to price during the week ahead.

In the secondary market, investment-grade bond spreads were mostly flat to tighter on the day.

The Markit CDX North American Investment Grade index headed out unchanged at a spread of 60 basis points on Friday.

Recently priced bonds from Energy Transfer Partners LP traded tighter at mid-morning and continued to firm later during the session.

The company’s $1 billion tranche of 4.05% notes due 2025, which sold with a spread of 195 bps over Treasuries, was quoted at 191 bps bid, 190 bps offered.

The $1 billion of 5.15% notes due 2045, which sold at Treasuries plus 245 bps, traded around 2 bps better on the day at 239 bps bid offered.

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