Morning Commentary: Spreads firm as market tone improves; Ensco’s new senior notes tighten

By Aleesia Forni

Virginia Beach, Sept. 26 – High-grade corporate bond spreads traded better early during Friday’s session as the market tone was positive following a weaker session Thursday.

The Markit CDX North American Investment Grade series 22 index was 1 basis point tighter at a spread of 61 bps.

The secondary market saw Ensco plc’s new $1.25 billion of senior notes firm at mid-morning

A trader quoted the company’s $625 million of 4.5% 10-year notes, which priced at Treasuries plus 195 bps, trade 1 bp tighter at 191 bps bid, 189 bps offered.

The $625 million of 5.75% 30-year bonds traded 2 bps better at 245 bps bid, 243 bps offered.

The notes priced at Treasuries plus 250 bps.

The London-based oil and gas services company sold the offering on Wednesday.

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