Midday Commentary: Spreads in high-grade secondary perform better; Pacific Gas notes tighten

By Aleesia Forni

Virginia Beach, Va., June 13 - Wednesday's two-part deal from Pacific Gas & Electric Co. traded tighter on Thursday, one market source said, as the secondary market tone was positive to open the session.

"Looks like spreads [are] doing a little better today," the source said, adding that the Markit CDX Series 20 North American Investment Grade index was 1.8 basis points tighter at midday.

Pacific Gas & Electric's $375 million of 3.25% 10-year notes traded at 106 bps bid, 104 bps offered following Thursday's sale at a spread of Treasuries plus 110 bps.

The $375 million tranche of 4.6% 30-year bonds, which priced at 125 bps over Treasuries, was quoted at 120 bps offered.

The electric and natural gas utility is based in San Francisco.

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