Midday Commentary: Secondary bond market 'on fire'; investor demand remains strong

By Aleesia Forni

Columbus, Ohio, Oct. 17 - The investment-grade secondary bond market got off to a healthy start on Wednesday, with one trader remarking that the market was 'on fire' as of midday.

The trader continued that the market was seeing one-way flows, with "buyers across the board."

Technology and telecommunication spreads were tighter on the day, performing 5 basis points to 15 bps better early in the session.

The trader noted standout performance in that area from CenturyLink Inc., Time Warner Cable Inc. and Hewlett-Packard Co.

Retail spreads were also "running tighter" on the day. Safeway Inc.'s bond spreads were seen 25 bps better at midday, with the company's 3.95% notes due 2020 quoted at 210 bps bid, 200 bps offered early in the session.

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