Germany's NRW sells floaters; issuers eye coming week for deals; secondary flat pre-holiday

By Aleesia Forni and Andrea Heisinger

New York, July 3 - There was nothing particularly bad about the high-grade bond market on Tuesday, but there were no corporate issuers jumping into the primary ahead of the Fourth of July holiday.

A small $500 million deal of five-year floating-rate notes was priced by the Land of Nordrhein-Westphalen, a source said in early afternoon.

"No corporate today that I'm aware of," a syndicate source said mid-day, adding that the market's "still going" and the tone is "not too terrible."

Issuers aren't looking to sell bonds for the remainder of the week, sources said on Tuesday.

"I have heard of nothing," a syndicate source said. "People are looking ahead to next week."

The secondary market was "basically flat" on the eve of the Fourth of July holiday, one trader said on Tuesday.

"Nothing really happened," another New York-based trader echoed.

Meanwhile, investment bank and brokers credit default swaps costs firmed.

Bank of America's CDS costs tightened 5basis points to 237 bps bid 247 bps offered. Citi's costs declined 5 bps to 227 bps bid 237 bps offered.

Brokers firmed. Merrill lynch's CDS costs tightened 8 bps to 252 bps bid 262 bps offered. Goldman Sachs' costs declined 10 bps to 245 bps bid 255 bps offered.

German state sells floaters

The Land of Nordrhein-Westfalen priced $500 million of five-year floating-rate notes (Aa1/AA-/) at par to yield Libor plus 70 bps, a market source said.

J.P. Morgan Securities LLC ran the books.

The German state is based in Dusseldorf.

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