Midday Commentary: Credit spreads widen early ahead of day's primary action

By Cristal Cody

Tupelo, Miss., March 3 - Investment-grade credit spreads eased early Monday in front of the day's primary activity, according to market sources.

"There is certainly scope for credit spreads to widen from here as the last time credit spreads were this narrow was mid-January when the 10-year yield was in the 2.85%-2.90% area and it is currently below 2.60%," RBC Capital Markets, LLC analysts said in a note on Monday.

The Markit CDX North American Investment Grade series 21 index closed on Friday 1 basis point tighter at a spread of 64 bps.

More than $30 billion of investment-grade supply priced in the previous week, and market sources expect several deals later in the day, with new offerings on tap from Rogers Communications Inc., Consolidated Edison Co. of New York, Inc., Public Service Co. of Colorado and Duke Energy Progress Inc.

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