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Traders still see signs of U.S. economic weakness.
In secondary trading, spreads, the yield difference between corporate bonds and comparable maturity U.S. Treasuries, were unchanged overall, as were junk bond prices. The Omaha, Nebraska-based company said the Securities and Exchange Commission is conducting a probe into United Agri Products, which contributed about 9 percent of its profits in the three years. ConAgra's 7.5 percent notes maturing in 2005 and 7.875 percent notes maturing in September 2010 widened about 0.1 percentage point each on Thursday after widening about 0.2 percentage point in the morning, to respective bids of 1.85 and 1.95 percentage points more than Treasuries. Nevertheless, it had to offer investors better terms on its new convertible notes. The notes are still expected to carry a coupon of 5.25 to 5.75 percent, but are now expected to carry a 30 to 35 percent conversion premium, down from an original 35 to 40 percent.