Midday Commentary: High-grade market opens flat to wider; Wrigley notes tighten in secondary

By Cristal Cody

Tupelo, Miss., Oct. 17 - Investment-grade bonds traded flat to slightly wider overall early Thursday as the U.S. government reopened, while WM. Wrigley Jr. Co.'s $3 billion of paper that priced on Wednesday tightened in secondary trading, according to market sources.

The Markit CDX North American Investment Grade series 21 index closed on Wednesday 3 basis points tighter to a spread of 74 bps.

Wrigley tightens

All five tranches of notes (Baa2/BBB/) that Wrigley sold traded better in the secondary market early Thursday, sources said.

The 1.4% notes due 2016 came in 15 bps to 65 bps bid, a trader said. Wrigley sold $400 million of the three-year notes at a spread of Treasuries plus 80 bps.

The 2% notes due 2017 tightened to 50 bps bid - 13 bps tighter than where the notes traded late Wednesday afternoon, according to traders. Wrigley sold $400 million of the four-year notes at Treasuries plus 65 bps.

Wrigley's 2.4% notes due 2018 traded stronger early in the day at 84 bps offered, a trader said. The company sold $550 million of the five-year notes at a spread of Treasuries plus 105 bps.

The tranche of 2.9% notes due 2019 were quoted better at 132 bps offered. Wrigley sold $750 million of the six-year piece at Treasuries plus 155 bps.

The company's 3.375% notes due 2020 traded Thursday morning at 111 bps offered, a trader said. Wrigley sold $900 million of the seven-year notes at Treasuries plus 135 bps.

The candy and food products company is based in Chicago.

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