Midday Commentary: High-grade bond market tone improves; Wal-Mart flat; Wells Fargo firms

By Cristal Cody

Tupelo, Miss., April 16 - Market tone felt better in the investment-grade bond market early Wednesday in the last full trading day ahead of the Easter holiday break, according to informed sources.

In the secondary market, Wal-Mart Stores Inc.'s senior notes (Aa2/AA/AA) brought in Tuesday's session traded mostly unchanged, a source said.

Wells Fargo & Co.'s 2.125% notes due 2019 that priced at the start of the week are trading 2 bps better, according to a market source.

Wal-Mart flat

Wal-Mart's 3.3% notes due 2024 were quoted opening the session flat at 69 bps bid, according to a market source.

The company sold $1 billion of the notes at Treasuries plus 73 bps.

The tranche of 4.3% bonds due 2044 also brought on Tuesday traded unchanged at 85 bps offered.

Wal-Mart sold $1 billion of the long bonds at Treasuries plus 90 bps.

The discount retailer is based in Bentonville, Ark.

Wells Fargo firms

Wells Fargo's 2.125% notes due 2019 firmed 2 bps to 53 bps offered as the session got underway, a source said.

The notes (A2/A+/AA-) priced in a $1.75 billion offering on Monday at a spread of Treasuries plus 57 bps.

The bank is based in San Francisco.

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