Midday Commentary: High-grade bonds flat to wider; Ford eases; Huntington Bancshares firms

By Cristal Cody

Tupelo, Miss., Aug. 5 - Investment-grade bonds traded mostly "unchanged to a little wider" early Monday in the secondary market as traders prepared for about $20 billion of new issuance expected over the week, a source said.

Ford Motor Credit Co. LLC's 4.375% senior notes due 2023 (Baa3/BB+/BBB-) eased 1 basis point from Friday to 175 bps bid, 171 bps offered in the early session Monday, a trader said.

The financing arm of Dearborn, Mich.-based auto company Ford Motor Co. sold the notes on Thursday at a spread of Treasuries plus 178 bps.

In other trading, Huntington Bancshares Inc.'s 2.6% senior notes due 2018 (Baa1/BBB/BBB+) tightened to 120 bps bid, 115 bps offered on Monday, a trader said.

Huntington, a Columbus, Ohio-based financial holding company, sold $400 million of the notes a week ago at a spread of 125 bps over Treasuries.

The Markit CDX Series 20 North American Investment Grade index opened early Monday at a spread of 73 bps.

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