Midday Commentary: Secondary spreads tighten 2 bps to 5 bps, Heineken notes firm

By Aleesia Forni

Columbus, Ohio, Oct. 4 - The investment grade bond market performed better early Thursday compared to the previous session, with spreads tightening 2 basis points to 5 bps, one trader said at midday.

Tuesday's new issuance from Heineken NV was seen trading 13 bps to 15 bps better in the secondary.

The $500 million tranche of 0.8% three-year notes traded at 42 bps bid, 39 bps offered.

The notes were sold with a spread of 55 bps over Treasuries.

The $1.25 billion of 1.4% five-year notes traded 13 bps better at 72 bps bid, 68 bps offered, following Tuesday's pricing at a spread of Treasuries plus 85 bps.

Meanwhile, the $1 billion of 2.75% notes due 2023 were quoted at 107 bps bid, 104 bps offered.

The notes priced with a spread of Treasuries plus 115 bps.

The $500 million tranche of 4% 30-year bonds was seen trading 15 bps tighter at 115 bps bid, 112 bps offered.

The 30-year bonds sold with a spread of 130 bps over Treasuries.

The brewery is based in Amsterdam.

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