Morning Commentary: High-grade spreads widen in secondary; Heinz bonds trade mixed

By Aleesia Forni

Virginia Beach, July 6 – Spreads in the investment-grade secondary bond market were mostly wider to open the week on Monday.

The Markit CDX North American Investment Grade series 23 index was 2 basis points wider at a spread of 70 bps.

Meantime, H.J. Heinz Co.’s recently priced $1 billion of 1.6% two-year notes were quoted 1 bp wider at 86 bps offered.

The notes sold with a spread of Treasuries plus 95 bps on June 23.

The Pittsburgh-based food processing company’s $1.5 billion of 2% three-year notes were quoted unchanged at 92 bps offered after pricing with a spread of 100 bps over Treasuries.

Sources expect primary activity to pick up this week following the quiet July 4 holiday-shortened week.

The market could see around $20 billion of new issuance for the first full week of the month.

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