High-grade issuers take break; Fed keeps rates unchanged; credit spreads tighten; bonds firm

By Cristal Cody

Tupelo, Miss., Jan. 30 – The high-grade bond market stayed quiet over Wednesday’s session as attention turned to the Federal’s Reserve’s monetary policy meeting.

No reported corporate or sovereign, supranational and agency issuers priced bonds over the session, sources said.

Investment-grade issuers already brought more than $15 billion of bonds to the primary market on Monday and Tuesday, compared to the $15 billion to $20 billion of supply forecast for the entire week.

The Federal Reserve kept the federal funds rate unchanged.

The Markit CDX North American Investment Grade 31 index tightened about 3 basis points on the day to head out at a spread of 70 bps.

In the secondary market, investment-grade bonds have traded mostly better this week.

New issues also are mostly tighter in secondary trading.

GATX Corp.’s 4.7% senior notes due April 1, 2029 priced on Tuesday tightened about 3 bps.

Charter Communications, Inc.’s 5.05% senior secured notes due March 30, 2029 priced earlier in January were unchanged but steady at about 10 bps tighter than issuance.

Wells Fargo & Co.’s 4.15% medium-term notes due Jan. 24, 2029 were flat but quoted nearly 20 bps better than where the paper came in mid-January.

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