Morning Commentary: Huntington Bank notes tighten; Roche, Pacific Gas mostly unchanged

By Cristal Cody

Tupelo, Miss., Nov. 4 – New investment-grade bonds priced earlier in the week opened mixed in secondary trading on Wednesday as the market focused on Federal Reserve chairman Janet Yellen’s congressional testimony set for later in the day.

Huntington National Bank’s 2.2% senior notes due 2018 brought to market on Tuesday traded nearly 10 basis points better than issuance in the secondary market.

Roche Holdings Inc.’s 3% senior notes due 2025 that priced on Monday traded flat to about 1 bp softer at the market opening.

Pacific Gas & Electric Co.’s long bonds sold on Monday were unchanged to about 1 bp tighter than issuance in the secondary market.

The Markit CDX North American Investment Grade 25 index was unchanged to modestly tighter early Wednesday at a spread of 75 bps.

On Tuesday, $16.17 billion of investment-grade issues were traded, according to Trace.

Huntington tightens, Roche eases

Huntington National Bank’s 2.2% notes due 2028 tightened to 106 bps offered in secondary trading, a market source said.

The bank priced $850 million of the notes (A3) on Tuesday at a spread of Treasuries plus 115 bps.

The banking affiliate of Huntington Bancshares is based in Columbus, Ohio.

Roche Holdings’ 3% senior notes due 2025 eased about 1 bp to 89 bps offered in the secondary market, a source said.

Roche sold $1 billion of the 10-year notes (A1/AA) on Monday at Treasuries plus 90 bps.

The drug maker is based in Basel, Switzerland.

Pacific Gas mostly flat

Pacific Gas & Electric’s 4.25% senior notes due 2046 opened unchanged to 1 bp tighter at 139 bps offered, according to a market source.

The company sold $450 million of the bonds on Monday (A3/BBB/A-) at a spread of Treasuries plus 140 bps.

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

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