Midday Commentary: Preferred market rises with Treasuries; primary quiets down; Wells ticks up

By Stephanie N. Rotondo

Phoenix, July 17 - The preferred stock market was "slightly up with Treasuries," a trader said Wednesday.

For their part, Treasuries were boosted by comments made by Federal Reserve chairman Ben Bernanke, who said that the central bank's bond purchase program was not on a "preset" course.

There were no new deals hitting the tape during the midweek session and a trader opined that the calendar would remain light for the rest of the week. However, assuming the market stayed stable, he expected to see deals starting to emerge next week.

As to this week's new issues, Wells Fargo & Co.'s $1.5 billion of 5.85% series Q class A fixed-to-floating rate noncumulative preferreds were ticking up a touch to $25.05, according to a trader.

The issue priced Monday and freed up on Tuesday.

Farm Credit Bank of Texas' Rule 144A offering of 6.75% fixed-to-floating rate $100-par class B series 2 noncumulative perpetual preferreds were meantime pegged at par bid.

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