Midday Commentary: Market firms slightly, feels 'stalled' overall; AstraZeneca tightens

By Aleesia Forni

Columbus, Ohio, Sept. 12 - As the investment-grade secondary market continues to soak up the week's new issues, spreads eased "a little tighter" during the early part of Wednesday's session.

However, one trader commented that the overall market "feels like it [has] stalled."

Tuesday's new deals from AstraZeneca plc, Computer Sciences Corp. and News America Inc. were all tighter by midday, the source said.

The 1.95% seven-year notes from AstraZeneca traded 9 basis points tighter, while the 30-year bonds firmed 7 bps.

Meanwhile, tranches of the new issue from Computer Sciences traded 15 bps to 25 bps tighter.

News America's new 3% 10-year notes tightened 6 bps.

AstraZeneca tightens

AstraZeneca's $1 billion tranche of 1.95% seven-year notes traded at 76 bps bid, 73 bps offered at midday, the trader said.

The notes priced Tuesday at a spread of Treasuries plus 85 bpss.

The 4% 30-year bonds were quoted at 113 bps bid, 110 bps offered, after pricing at a spread of Treasuries plus 120 bps.

The biopharmaceutical company is based in London.

Computer Sciences firms

In other trading, the new three-year notes from Computer Sciences traded at 195 bps bid, 190 bps offered, according to the trader.

The notes sold at 220 bps over Treasuries.

After pricing on Tuesday at a spread of 280 bps over Treasuries, a second tranche of 4.45% 10-year notes was seen 15 bps tighter at 265 bps bid, 260 bps offered.

The information technology company is based in Falls Church, Va.

News America tightens

News America's $1 billion 3% 10-year notes traded at 134 bps bid after pricing on Tuesday to yield Treasuries plus 140 bps.

The subsidiary of media conglomerate News Corp. is based in New York City.

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