Midday Commentary: High-grade bond spreads mostly flat in muted session; ITC notes tighten

By Aleesia Forni

Virginia Beach, Va., June 27 - High-grade secondary action was muted during the early part of Thursday's session, one trader said, as spreads were mostly unchanged at mid-morning.

Meanwhile, the Markit CDX North American Investment Grade index was 3 basis points tighter at a spread of 85 bps.

The source saw Wednesday's $550 million two-part issue from ITC Holdings Corp. trading better.

The company's $250 million of 4.05% 10-year notes, which priced at a spread of Treasuries plus 155 bps, was quoted 4 basis points better at 151 bps bid, 146 bps offered.

The $300 million tranche of 5.3% 30-year bonds was seen at 173 bps bid, 168 bps offered.

ITC Holdings sold the bonds at a spread of 175 bps over Treasuries.

The power transmission company is based in Novi, Mich.

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