Midday Commentary: Market seen weaker as spreads widen; CenturyLink bonds underperform

By Aleesia Forni

Columbus, Ohio, Oct. 10 - The investment-grade secondary bond market was weaker overall by midday, a trader said Wedesday.

Financial names saw widening between 3 basis points to 10 bps, while telecommunication and technology paper widened 3 bps to 5 bps.

The trader saw underperformance in CenturyLink Inc. bonds in particular, with cash trading 10 bps to 15 bps wider.

CenturyLink's 5.8% 10-year notes were quoted at 335 bps bid, 325 bps offered early in the session.

The company priced $1.4 billion of the notes at a spread of Treasuries plus 380 bps on March 5, 2012.

The broadband and telecommunications company is based in Monroe, La.

Meanwhile, Tuesday's deals from John Deere Capital Corp. and NStar Electric Co. firmed in trading.

John Deere tightens

The $500 million issue of 1.7% senior notes due Jan. 15, 2020 tightened 5 bps to 60 bps bid, 55 bps offered on Wednesday.

The notes sold with a spread of Treasuries plus 65 bps.

The funding arm of agriculture and industrial equipment maker Deere & Co. is based in Moline, Ill.

NStar notes firm

In other recent issuances, NStar Electric's $400 million of 2.375% 10-year debentures were quoted 11 bps better at 64 bps bid, 62 bps offered.

The notes were sold on Tuesday at a spread of Treasuries plus 70 bps.

The electric subsidiary of Northeast Utilities is based in Boston.

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