Midday Commentary: Spreads unchanged to wider in secondary market; NIKE bonds in demand

By Aleesia Forni

Virginia Beach, Va., April 24 - Following a strong session on Tuesday, investment-grade bond spreads were flat to wider early during Wednesday's trading session, a market source commented.

The Markit CDX North American Investment Grade index was unchanged at a spread of 81 basis points at midday.

However, the trader noted strong demand for NIKE, Inc.'s recent two-part deal, which traded 3 bps to 4 bps better in the secondary.

"They're doing pretty well," the trader said, adding there had been "lots of interest" in the company's new bonds.

The sale was the company's first bond sale in the United States since 2003.

The $500 million of 2.25% 10-year notes was quoted 4 bps better early during the session at 54 bps bid.

The notes priced at a spread of Treasuries plus 58 bps.

Meanwhile, the $500 million tranche of 3.625% 30-year bonds was quoted 3 bps better at 72 bps bid following Tuesday's sale with a spread of 75 bps over Treasuries.

NIKE is a Beaverton, Ore.-based sports footwear and apparel manufacturer.

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