Midday Commentary: High-grade market tone strong; new issues trading mostly unchanged

By Aleesia Forni

Virginia Beach, Va., March 7 - Though market sources noted a positive tone to Thursday's open, high-grade bond deals from Wednesday were seen trading mostly unchanged early during the session.

ACE INA Holdings, Inc.'s recent 10-year bonds were quoted at 77 basis points offered early Thursday, according to a trader.

The trader added that the 30-year bonds were trading "around the same level" compared to levels seen late Wednesday at 96 bps offered.

The company priced the $475 million tranche of 2.7% 10-year notes at a spread of Treasuries plus 80 bps.

The $475 million of 4.15% 30-year bonds were sold at a spread of Treasuries plus 100 bps.

In other secondary action, John Deere Capital Corp.'s recent bonds were also trading around levels seen Wednesday, the trader said.

The source saw the notes at 51 bps bid at midday.

John Deere Capital sold the $400 million tranche of 1.3% five-year notes at a spread of Treasuries plus 55 bps before the notes were quoted at 51 bps bid, 50 bps offered later during the session.

The Moline, Ill.-based funding arm of agriculture and industrial equipment maker Deere & Co. also sold $600 million of two-year floating-rate notes at par to yield Libor plus 7 bps.

Meanwhile, the source had not seen any markets on Tupperware Brands Corp.'s $200 million add-on to its existing 4.75% senior notes due 2021, which priced on Wednesday at a spread of 225 bps over Treasuries.

"Looks like [the] Street is looking for bonds, but I'm not seeing any levels," the source said.

The Orlando, Fla.-based home and consumer products company priced the original $400 million notes on May 25, 2011 at Treasuries plus 175 bps.

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