Midday Commentary: Primary quiets as Freeport-McMoRan, Rogers Communications bonds gain in trading

By Andrea Heisinger

New York, March 1 - The investment-grade bond market was quiet Friday on the new issue front, following a day when more than $12 billion of bonds were sold.

A source said there hadn't been any new deals announced and that the market wasn't expecting any.

The influx of bonds from Thursday saw some mixed performance in trading, a secondary source said at midday.

Volume was "about what you'd expect for a Friday," the source said. "There was a lot of flow early, but now it's died down."

The $6.5 billion sale in four parts from Phoenix-based multinational mining company Freeport-McMoRan Copper & Gold Inc. was being closely watched.

A trader said the four bonds, with maturities of 2018, 2020, 2023 and 2043, initially moved 10 basis points to 15 bps tighter in early trading Friday. Most of the tranches then moved back to pricing levels, he added.

The 3.875% 10-year note was seen at about its 200 bps over Treasuries price, while the 5.45% 30-year bond was seen about 5 bps tighter than its price of 237.5 bps over Treasuries.

Both tranches of the $1 billion sale from Rogers Communications Inc. were seen improved, the trader said.

"They each moved a couple [basis points] tighter," he said.

The Toronto-based wireless and cable TV company sold 3% notes due 2023 at 113 bps over Treasuries and 4.5% 30-year bonds at Treasuries plus 145 bps.

A trader said that the two fixed-rate tranches of notes from the Coca-Cola Co. "didn't really go anywhere" in the secondary market. The Atlanta-based beverage company priced $2.5 billion in three tranches, including a two-year floating-rate note, on Thursday.

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