Corporate bond trading activity remains light in both the primary issuance market as well as the secondary market. One trader said that secondary trading had been confined to a narrow group of high profile go go names. At the open this morning paper was cheaper by 3basis points to as much as 10basis points. The weakness in spreads was very name specific and many credits are barely quoted.
The reversal in the stock market animated a rebound in spreads and a generic industrial or telecom name is just 2 basis points or 3 basis points wider as we head into the close.
In the quiescent new issue market Union Pacific offered $750M 10years at T+ 210 basis points.