Midday Commentary: Early market focus on Fed rate decision; IBM 10-year notes hold tighter

By Cristal Cody

Tupelo, Miss., July 31 - Traders focused early Wednesday on a heavy round of economic data and a rate decision expected later in the day as the policy-setting Federal Open Market Committee wraps up a two-day meeting, sources said.

"Fed stuff," one source said of the morning's activity.

In the secondary high-grade market, International Business Machines Corp.'s 3.375% notes due 2023 (Aa3/AA-/A+), which were priced on Monday, held onto Tuesday's gains early Wednesday, trading in the 80 basis points area, an informed source said.

IBM, an Armonk, N.Y.-based information technology and computer company, sold $1.5 billion of the notes at a spread of Treasuries plus 83 bps.

The Markit CDX North American Investment Grade index was flat at a spread of 76 bps.

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