Morning Commentary: Bond spreads mostly wider; H.J. Heinz bonds trade better in secondary

By Aleesia Forni

Virginia Beach, June 29 – High-grade bonds were trading wider overall to open the shortened week on Monday.

The Markit CDX North American Investment Grade series 23 index was 2 basis points wider at a spread of 65 bps early Monday.

In other secondary news, tranches of H.J. Heinz Co.’s recently priced $10 billion seven-part bond offering (Baa3/BBB-) continued to trade mostly tighter, according to a market source.

The Pittsburgh-based food processing company’s $1 billion of 1.6% two-year notes was around 3 bps tighter at 92 bps bid, 90 bps offered.

The notes sold with a spread of Treasuries plus 95 bps on Tuesday.

The company’s $1.5 billion of 2% three-year notes were quoted at 95 bps offered after pricing with a spread of 100 bps over Treasuries.

The company’s $1.5 billion of 2.8% five-year notes, which sold with a spread of Treasuries plus 115 bps, were 2 bps tighter at 109 bps offered.

A $2 billion 3.95% 10-year note traded 2 bps better at 154 bps bid, 152 bps offered.

The notes sold with a spread of Treasuries plus 155 bps.

A $1 billion 5% 20-year note was quoted at 176 bps offered after pricing with a spread of Treasuries plus 185 bps.

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