Midday Commentary: Active high-grade bond market pace continues; PNC, Schwab notes firm

By Aleesia Forni

Virginia Beach, Va., July 23 - The high-grade bond market saw another positive tone at the session's open on Tuesday, one market source said early during the day's trading.

"Should see another busy day today," the source added at mid-morning.

The Markit CDX North American Investment Grade index was 1 basis point tighter at a spread of 72 bps.

Meanwhile, Monday's new issues from PNC Bank NA and Charles Schwab Corp. were trading tighter on Tuesday.

PNC's $750 million 10-year notes were quoted 4 bps better compared to levels seen late Monday, while Charles Schwab's $275 million five-year notes firmed 1 bp.

PNC tightens

PNC Bank's $750 million of 3.8% notes due 2023 traded 4 bps better on the day at 129 bps bid, 125 bps offered, a trader said.

PNC sold the 10-year notes at a spread of 135 bps over Treasuries on Monday.

The subsidiary of PNC Financial Services Group is based in Pittsburgh.

Schwab notes firm

In another deal from Monday's market, Charles Schwab's new $275 million 2.2% five-year senior notes were quoted 1 bp better early Tuesday at 85 bps bid, 80 bps offered.

The company sold the notes to yield Treasuries plus 90 bps.

Charles Schwab is a brokerage and financial services company based in San Francisco.

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