Midday Commentary: Primary gears up for busy week; spreads tighter; Caterpillar Financial firms

By Cristal Cody

Tupelo, Miss., May 12 - Investment-grade bond issuers including Pfizer Inc., Westar Energy, Inc., Continental Resources, Inc. and Tampa Electric Co. are expected to be in Monday's primary market with new issuance, according to filings with the Securities and Exchange Commission.

The week is targeted to see about $25 billion of issuance, according to a market source.

Bond spreads opened the day modestly tighter, a source said.

The Markit CDX North American Investment Grade series 22 index closed on Friday flat at a spread of 64 basis points.

Caterpillar tightens

Caterpillar Financial Services Corp.'s senior notes (A2/A/A), which were brought a week ago, traded about 5 bps tighter than issuance, according to a market source.

Caterpillar Financial Services' 3.4% notes due 2024 firmed to 75 bps offered, a source said early Monday.

The company sold $1 billion of the 10-year notes on May 5 at Treasuries plus 80 bps.

Nashville, Tenn.-based Caterpillar Financial Services is the financial arm of Caterpillar Inc.

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