SoCal Gas, Orange & Rockland price amid market volatility; Bank of America, Citigroup firm

By Aleesia Forni and Cristal Cody

Virginia Beach, June 15 – The investment-grade bond market was quiet to open the week on Monday, with a volatile market backdrop and stalled Greece debt talks helping keep potential issuers on the sidelines.

The primary did see two smaller-sized deals from Southern California Gas Co. and Orange & Rockland Utilities Inc.

Southern California Gas issued $600 million of first mortgage bonds in three- and 10-year tranches, while Orange & Rockland priced a $120 million 30-year bond.

In forward calendar news, Bank Nederlandse Gemeenten NV set price talk for a planned three-year notes offering expected to come to market later this week.

Players were calling for around $25 billion of new issuance this week, with the bulk of that to price ahead of the Federal Reserve’s statement following its two-day policy meeting, but one source noted that he would be “very surprised” if the primary hosted that amount.

“Probably more like $15 [billion],” he said.

High-grade credit spreads remained weak over the day.

The Markit CDX North American Investment Grade series 23 index eased 2 bps to a spread of 70 bps.

In the secondary market, Bank of America Corp.’s 4% notes due 2025 firmed 3 bps on Monday.

Citigroup Inc.’s 3.3% senior notes due 2025 traded 3 bps tighter.

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