Midday Commentary: High-grade secondary market sees low trade volume; spreads move wider

By Aleesia Forni

Virginia Beach, Va., July 5 - Spreads in the high-grade secondary bond market were mostly weaker on Friday, sources said, following the July Fourth holiday on Thursday.

One market source noted that trade volume was seen "really low" at $1.2 billion early during the session.

Meanwhile, the source said the Markit CDX North American Investment Grade index was 3 basis points wider at mid-morning.

"Definitely thinly staffed desks today," the source said.

Another trader quoted ITC Holdings Corp.'s recent deal 2 bps to 3 bps better compared to levels seen late Wednesday.

ITC Holdings' $250 million of 4.05% 10-year notes traded 3 bps tighter at 157 bps bid, 152 bps offered, the trader said.

The company sold the notes at a spread of Treasuries plus 155 bps on June 26.

The $300 million tranche of 5.3% 30-year bonds firmed 2 bps to 175 bps bid, 172 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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