Midday Commentary: High-grade secondary market tone weak; Duke, South Carolina E&G notes tighten

By Aleesia Forni

Virginia Beach, Va., June 11 - Monday's new issues from Duke Energy Corp. and South Carolina Electric & Gas Co. traded tighter early Tuesday, though the weakened tone of the high-grade bond market continued, a trader said.

Duke Energy's upsized $500 million of 2.1% five-year senior notes traded 2 basis points better at 93 bps bid, 89 bps offered.

The notes priced at Treasuries plus 100 bps.

The diversified energy company is based in Charlotte, N.C.

In other trading, the $400 million of 4.6% 30-year first mortgage bonds from South Carolina Electric & Gas traded 1 bp tighter at 125 bps bid, 121 bps offered.

The Cayce, S.C.-based utility priced the offering at a spread of Treasuries plus 128 bps.

Meanwhile, the Markit CDX Series 20 North American Investment Grade index was 3 bps wider at a spread of 87 bps.

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