Midday Commentary: IBM, Imperial Tobacco notes trade better in secondary market

By Aleesia Forni

Columbus, Ohio, Feb. 6 - The secondary high-grade bond market saw Tuesday's issuances from International Business Machines Corp. and Imperial Tobacco Group plc firm on Wednesday, a trader said.

IBM's $1 billion tranche of 1.25% five-year notes was quoted 3 basis points better at 44 bps bid, 41 bps offered.

The notes were sold at a spread of Treasuries plus 47 bps.

The sale also included a $1 billion tranche of two-year floating-rate notes, which was sold at par to yield Libor minus 2 bps.

The information technology and computer company is based in Armonk, N.Y.

Meanwhile, Imperial Tobacco's $1.25 billion of 2.05% five-year notes was quoted 3 bps better at 117 bps bid, 114 bps offered following Tuesday's pricing with a spread of Treasuries plus 120 bps.

The tranche of $1 billion of 3.5% 10-year notes also traded 3 bps tighter at 147 bps bid, 144 bps offered.

The Bristol, England-based maker of cigarettes and tobacco products priced the notes at 150 bps over Treasuries.

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