Midday Commentary: High-grade bonds firm in quiet start to market; IBM, Halliburton tighter

By Cristal Cody

Tupelo, Miss., July 30 - The investment-grade bond market opened Tuesday quiet but slightly better with new issues priced the previous day firmer by mid-morning.

"Quiet out there; things seem a tad tighter," a trader said.

International Business Machines Corp.'s new 10-year notes, which were priced in a $2.15 billion total two-tranche deal (Aa3/AA-/A+) on Monday, firmed about 3 basis points by early Tuesday, a trader said.

IBM, an Armonk, N.Y.-based information technology and computer company, sold $1.5 billion of the 3.375% notes at a spread of Treasuries plus 83 bps. The notes firmed to 80 bps bid, 79 bps offered on Tuesday, according to the trader.

Halliburton Co.'s new 10-year senior notes, part of a $3 billion four-tranche offering (A2/A/A-) on Monday, traded early Tuesday slightly tighter on the bid side, a trader said.

The Houston-based diversified energy services company priced $1.1 billion of the 10-year notes at a spread of Treasuries plus 93 bps. The notes were seen in the market early at 92 bps bid, 93 bps offered.

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