Agency spreads move out slightly as week ends; FFCB prices $1.275 billion 3.5-year bond

By Lisa Kerner

Charlotte, N.C., April 15 - Agency spreads widened slightly on Friday by about one-half of a basis point, according to Mary Ann Hurley, vice president of fixed-income trading for D.A. Davidson & Co.

The most noticeable change occurred in the intermediate sectors with maturities between 2014 and 2019, Hurley said.

The change was not attributed to anything in particular.

Also on Friday, the Federal Farm Credit Banks priced $1.275 billion 1.625% 3.5-year Designated Bonds on Friday at 99.942 to yield 1.642%, or 44 bps over Treasuries.

The non-callable securities were talked at 43 bps over Treasuries.

Hurley said she understood that the offer was "very well-received."

The bond will settle April 19.

Lead managers on the deal were J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc. and UBS Securities LLC.

The U.S. Bureau of Labor Statistics released Consumer Price Index information for March on Friday.

The Consumer Price Index for all urban consumers rose 0.5% in March on a seasonally adjusted basis and 2.7% over the last 12 months, before seasonal adjustment.

The gasoline index posted its ninth consecutive increase, rising 14.4% over the last three months, according to a news release.

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