Midday Commentary: Market's positive tone holds; Cox Communications, Citigroup notes wider

By Aleesia Forni

Virginia Beach, Va., April 25 - The strong tone to the investment-grade bond market continued on Thursday, one trader said.

There were "better buyers across the board," the source added at midday.

However, Wednesday's new issues from Cox Communications Inc. and Citigroup Inc. were trading wider early during the session.

Both of Cox's new bonds traded 5 basis points wider on Thursday, while Citigroup's notes were quoted 4 bps wider.

Meanwhile, the Markit CDX North American Investment Grade index was 2 bps tighter at a spread of 82 bps.

Cox weakens

Cox's $1 billion tranche of 2.95% 10-year notes was quoted 5 bps wider at 130 bps bid, 127 bps offered early during the session.

The notes priced at a spread of Treasuries plus 130 bps on Wednesday.

The $500 million of 4.5% 30-year bonds, which were sold at 160 bps over Treasuries, traded 5 bps wider from levels seen late Wednesday at 162 bps bid, 159 bps offered.

The provider of phone, internet and TV service is based in Atlanta.

Citigroup notes widen

In other secondary action, Citigroup's $1.35 billion sale of 1.75% five-year notes traded 4 bps wider from levels seen on Wednesday at 109 bps bid, 106 bps offered.

The notes were priced at Treasuries plus 108 bps.

The financial services company is based in New York City.

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