Midday commentary: High-grade secondary bond spreads widen on heels of FOMC; Agilent weaker

By Aleesia Forni

Virginia Beach, Va., June 20 - Spreads in the high-grade secondary bond market were weaker on Thursday following the conclusion of the two-day Federal Reserve Federal Open Market Committee meeting, a market source said.

The Markit CDX North American Investment Grade index was 2 basis points wider at a spread of 90 bps on early during the session.

Recent deals from Agilent Technologies, Inc. and Mylan Inc. traded wider on the day, one trader said.

Aligent's $600 million of 3.875% 10-year senior notes were quoted 9 bps wider at 190 bps bid, 185 bps offered at midday.

The notes were sold at a spread of Treasuries plus 175 bps on Tuesday.

The bioanalytic and electronic measurement technology company is based in Santa Clara, Calif.

Meanwhile, Mylan's $650 million of 2.6% five-year bonds traded 3 bps wider at 158 bps bid, 152 bps offered.

The sale also included a $500 million tranche of 1.8% three-year notes sold at 99.925.

The generic and specialty pharmaceutical company is based in Canonsburg, Pa.

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