Midday Commentary: Spreads in high-grade secondary market widen; new Pfizer notes weaker

By Aleesia Forni

Virginia Beach, Va., May 29 - Tuesday's new note issue from Pfizer Inc. was seen trading weaker early during Wednesday's session, as most spreads in the investment-grade secondary market were wider at midday, market sources said.

The company's $750 million of 0.9% notes due 2017 were quoted 5 basis points weaker at 46 bps bid, 41 bps offered.

The notes were priced at Treasuries plus 45 bps.

Meanwhile, the $1 billion of 1.5% five-year notes traded 3 bps wider at 51 bps bid, 48 bps offered.

Pfizer sold the notes with a spread of Treasuries plus 50 bps.

The trader quoted the $1 billion tranche of 3% 10-year notes at 90 bps bid, 88 bps offered following Wednesday's sale with a spread of Treasuries plus 87.5 bps.

Finally, the $750 million of 4.3% 30-year bonds, which priced with a spread of 100 bps over Treasuries, traded 3 bps wider at 103 bps bid, 101 bps offered.

The sale also included $500 million of five-year floating-rate notes sold at par to yield Libor plus 30 bps.

Pfizer is a New York-based global biopharmaceutical company.

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