Midday Commentary: Investment-grade bonds flat in quiet Friday morning session

By Cristal Cody

Tupelo, Miss., Sept. 20 - Market activity slowed early Friday with investment-grade bonds mostly unchanged in the morning session, according to market sources.

"The last trading day of the week has all the makings of a lackluster session with no economic events on the calendar," RBC Capital Markets, LLC analysts said in a note on Friday.

The Markit CDX North American Investment Grade index rolled to a new index, series 21, on Thursday to close at a spread of 79 basis points.

"Credit spreads have settled in near the bottom of the recent range following the unexpected decision by the Federal Reserve to not trim the size of its bond buying program," the RBC analysts said. "More QE likely means continued strong demand for corporate debt as it crowds buyers out of the government bond market and forces investors out the risk curve."

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