Midday Commentary: High-grade bond spreads tight; CNA notes unchanged in early trade

By Cristal Cody

Tupelo, Miss., Feb. 25 - Investment-grade bonds remained firm early Tuesday as the market prepared for a second active primary session, though the new issuance may prevent spreads from tightening much more, informed sources said.

The Markit CDX North American Investment Grade series 21 index closed on Monday 1 basis point better at a spread of 64 bps.

CNA unchanged

CNA Financial Corp.'s new 3.95% senior notes due 2024 traded unchanged early Tuesday, according to a market source.

CNA Financial's 3.95% senior notes due 2024 were flat in secondary trading at 120 bps bid, 118 bps offered, a source said.

The company sold $550 million of the 10-year notes (Baa2/BBB/BBB) on Monday at a spread of Treasuries plus 120 bps.

CNA Financial is an insurance company based in Chicago.

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