Morning Commentary: Lennox, Orange in high-grade deal pipeline; Honeywell notes soften

By Cristal Cody

Eureka Springs, Ark., Oct. 25 – Lennox International Inc. and Orange SA, formerly France Telecom, plan to price new bond offerings in the high-grade primary market on Tuesday.

Bonds were mixed in secondary trading.

Honeywell International Inc.’s new 2.5% notes due 2026 that priced on Monday traded 2 basis points softer in the secondary market.

The Markit CDX North American Investment Grade index was unchanged at a spread of 74 bps.

The three-month Libor yield was stable at 88 bps. The three-month Libor yield has increased by more than 50 bps over the past year, according to a Confluence Investment Management LLC report on Tuesday.

On Monday, $14 billion of investment-grade issues were traded, according to Trace.

Honeywell eases

Honeywell International’s 2.5% notes due 2026 were quoted trading softer at 80 bps offered, according to a market source early Tuesday.

Honeywell sold $1.5 billion of the 10-year notes (A2/A/A) on Monday at a spread of Treasuries plus 78 bps.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

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