Midday Commentary: Investment-grade bonds flat ahead of supply; Verizon notes firm

By Cristal Cody

Tupelo, Miss., Feb. 11 - Investment-grade bond spreads held mostly unchanged in front of expected issuance later in the day, according to market sources.

The Markit CDX North American Investment Grade series 21 index ended Monday flat at a spread of 68 basis points.

Verizon firms

In the secondary market, Verizon Communications Inc.'s bonds (Baa1/BBB+/A-) from the record $49 billion deal brought in September continue to trade heavily, a source said.

Verizon's 5.15% notes due 2023 traded early Tuesday about 4 bps better from a week ago, the source said.

Verizon's 5.15% notes due 2023 tightened 1 bp from the previous day to 137 bps offered early Tuesday, a source said.

The issue was quoted flat a week ago at 141 bps offered.

Verizon sold $11 billion of the 10-year notes at Treasuries plus 225 bps on Sept. 11.

The telecommunications company is based in New York City.

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