Issuers hold out until after Memorial Day holiday; Entergy Arkansas flat; Analog Devices wider

By Aleesia Forni and Andrea Heisinger

New York, May 24 - Potential issuers of high-grade bonds sat out Friday's short session, sources said.

The week ended with an early close following a similar drought on Thursday when no new corporate bonds were priced.

Sources had said that issuers were holding off until the week following Monday's close for the Memorial Day holiday. Comments from Federal Reserve chairman Ben Bernanke on Wednesday and some softness in Asian markets led to wider spreads Thursday and issuers holding off on plans to price notes.

The coming week is said to have between $15 billion and $20 billion of supply on tap, a market source said at midday Friday.

"We should see some things Tuesday. I know we had some marketing calls today," the source said.

In secondary action, Wednesday's deals from Entergy Arkansas, Inc. and Analog Devices Inc. traded flat and wider, respectively, on Friday, one trader said.

Entergy Arkansas' recent $250 million 3.05% 10-year first mortgage bonds were quoted unchanged at 97 bps bid, 92 bps offered compared to levels seen Thursday.

The notes sold on Wednesday at a spread of Treasuries plus 105 bps.

The utility company is based in Little Rock, Ark.

Meanwhile, Analog Devices' $500 million sale of 2.875% 10-year senior notes traded 2 bps wider at 94 bps bid, 90 bps offered.

The notes priced at Treasuries plus 90 bps on Wednesday.

The maker of circuits for electronic equipment is based in Norwood, Mass.

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