OeKB, International Finance price as primary pace slows; secondary spreads soften

By Aleesia Forni

Virginia Beach, Sept. 25 – The investment-grade primary market quieted on Thursday, with the bond market showing some signs of fatigue following the onslaught of supply this month.

The primary did see new deals price from Oesterreichische Kontrollbank AG (OeKB) and International Finance Corp. on Thursday.

OeKB came to market with $1 billion of 2.375% seven-year bonds priced in line with talk.

Meanwhile, International Finance sold $500 million of two-year global bonds during the session.

Roughly $26.6 billion of new issuance has hit the investment-grade primary market this week, topping what sources had predicted to be $20 billion to $25 billion of supply.

Looking forward, the session ahead is predicted to be a typically quiet Friday for the high-grade market.

“Not expecting much activity tomorrow,” a source said.

In the secondary market, spreads were weaker overall on Thursday, widening around 3 bps to 5 bps, a trader said.

The Markit CDX North American Investment Grade series 22 index was 3 bps wider at a spread of 62 bps.

Ensco plc’s new $1.25 billion two-part offering of senior notes, which priced on Wednesday, traded better during the session.

The $625 million of 4.5% 10-year notes, which priced at Treasuries plus 195 bps, traded 2 bps tighter at 192 bps bid, 190 bps offered.

The $625 million of 5.75% 30-year bonds traded flat from Thursday’s close at 247 bps bid.

The notes priced at Treasuries plus 250 bps.

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