Midday Commentary: Investment-grade bond spreads stable; Verizon, AT&T ease in early trade

By Cristal Cody

Tupelo, Miss., March 11 - Investment-grade credit spreads remained stable early Tuesday following more than $10 billion of new issuance in the previous session, according to market sources.

More than $50 billion of high-grade bonds have priced since last week.

The Markit CDX North American Investment Grade series 21 index closed unchanged on Monday at a spread of 63 basis points.

Verizon Communications Inc.'s bonds (Baa1/BBB+/A-) from its record $49 billion offering in September eased in early trading following the company's $4.5 billion five-part deal on Monday, according to a market source.

AT&T Inc.'s notes (A3/A- /A) traded slightly wider in the morning session, a source said.

Verizon eases

Verizon's 5.15% notes due 2023 widened about 5 bps to 134 bps offered early Tuesday, according to a market source.

The company sold $11 billion of the notes at Treasuries plus 225 bps on Sept. 11.

Verizon's 6.55% bonds due 2043 eased 3 bps to 159 bps offered, according to a market source.

Verizon sold $15 billion of the long bonds at Treasuries plus 265 bps in the September offering.

The telecommunications company is based in New York City.

AT&T notes softer

AT&T's 5.8% notes due 2019 widened 7 bps from Friday's session to 82 bps bid early Tuesday, a market source said.

The issue priced in a $2.25 billion offering in 2009 with a spread of Treasuries plus 300 bps.

The telecommunications company is based in Dallas.

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