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Corporate bonds

higher but listless

NEW YORK: US high-grade corporate bonds closed a miserable on Monday higher with US treasuries without ever really exciting any interest, dealers said.

Spreads to US treasuries were unchanged across most maturities on very light volume. Trading was at a virtual standstill Monday as the market failed to revive itself from the lethargic mood of last week.

The primary market produced two new deals totalling $300 million. Endesa Chile Overseas set a $150 million 10-year issue of Baa1/A-minus rated debt to yield 90 basis points over comparable US treasuries.

WMX Technologies set a $150 million three-year A1/A-minus issue to yield 32 basis points over treasuries.

Traders said Pacific Bell 30-year noncallable paper was one of the few active issues Monday tightening a touch to a spread of 59 basis points over comparable treasuries.

Junk-bonds were also lethargic ticking up about a quarter point with few winners or losers.

Chemical and related companies lost some ground with dealers citing Arcadian Partners and Bordern Chemicals among the losers. Arcadian slipped to 108-7/8 bid down from 110-1/2 on Friday.

American Telecasting gained about a point and a half closing bid at 67 and offered at 67-1/4, dealers said.

With last week seeing a major uptick in funds flowing into the junk-market from mutual funds the primary market looks set for a boost.

Among those expected in market this week are Chesapeake Energy, Americold Corp, Nuevo Energy and Vanquard Cellular.

In the government market the 30-year long-bond closed 14/32 higher at 91-23/32 to yield 6.64 percent.-Reuter