Midday Commentary: Light volumes as players focus on Europe, Treasuries; Cytec notes weaken

By Aleesia Forni

Columbus, Ohio, Feb. 27 - Spreads in the investment-grade secondary bond market were "basically unchanged" heading into midday on Wednesday, a trader said.

The market saw light volumes early in the session, as players continue to "keep eyes on Europe" and U.S. Treasuries, the source added.

Tuesday's new issue from Cytec Industries Inc. was trading slightly wider from levels seen late during that session, though still better than its initial pricing spread.

Meanwhile, Philip Morris International Inc.'s recent notes were trading unchanged to tighter at midday.

Philip Morris mostly flat

Philip Morris International's $1.85 billion of senior notes traded mostly unchanged on Wednesday, according to a market source.

The $600 million of 2.625% notes due 2023 were quoted at 93 basis points bid, 91 bps offered early in the session.

The notes were sold at a spread of 95 bps over Treasuries, and a trader at another desk quoted the notes at 91 bps offered near Tuesday's close.

The company's $850 million of 4.125% bonds due 2043 traded at 120 bps bid, 118 bps offered following Tuesday's pricing at a spread of Treasuries plus 120 bps.

A trader had quoted the bonds at 118 bps offered late Tuesday.

The offering also included $400 million of two-year floating-rate notes priced at par to yield Libor plus 5 bps.

The producer of cigarette and tobacco products is based in New York.

Cytec widens slightly

In another recent deal, Cytec Industries' $400 million of 3.5% senior notes was quoted 1 bp weaker at midday.

A trader saw the notes at 162 bps bid, 158 bps offered.

The notes were trading at 161 bps bid, 160 bps offered late Tuesday after pricing with a spread of 170 bps over Treasuries earlier in the session.

The specialty chemicals and materials company is based in Woodland Park, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.