Midday Commentary: Positive tone continues, though market activity quiet ahead of holiday

By Aleesia Forni

Virginia Beach, Va., July 2 - The positive tone to the high-grade bond market continued early Tuesday, one trader said.

"Not too much [activity] so far," the trader said at mid-morning. "[The market is] very quiet with the holiday week, as you might assume."

The Markit CDX North American Investment Grade index was flat at a spread of 84 basis points early during the session.

The source added that Wednesday's offering from ITC Holdings Corp. traded mixed in the secondary, though both tranches hung near their respective new issue spreads.

The company's $250 million of 4.05% 10-year notes traded 1 bp wider compared to levels seen late Monday at 158 bps bid, 152 bps offered.

ITC Holdings sold the notes at a spread of Treasuries plus 155 bps on Wednesday.

The $300 million tranche of 5.3% 30-year bonds was quoted 1 bp wider at 175 bps bid, 170 bps offered.

ITC Holdings sold the bonds at a spread of 175 bps over Treasuries.

The power transmission company is based in Novi, Mich.

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