Midday Commentary: Market opens to positive tone, though light issuance expected; ITC widens

By Aleesia Forni

Virginia Beach, Va., July 1 - Though the high-grade bond market saw a positive open on Monday, players expect issuance in the primary market to be light during the shortened week due to the Fourth of July holiday.

The Markit CDX North American Investment Grade index was 2 basis points tighter at a spread of 86 bps early Monday.

Meanwhile, a trader saw the recent two-part deal from ITC Holdings Corp. trading weaker compared to levels seen late Friday.

The source quoted the company's $250 million of 4.05% 10-year notes at 153 bps offered.

A trader at another desk had quoted the notes at 153 bps bid, 150 bps offered late Friday.

ITC Holdings sold the notes at a spread of Treasuries plus 155 bps on Wednesday.

Meanwhile, the $300 million tranche of 5.3% 30-year bonds was also quoted wider at 173 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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