Morning Commentary: High-grade bonds mixed; BNP, International Paper firm; AT&T mostly flat

By Cristal Cody

Tupelo, Miss., May 18 – High-grade bonds were mixed in early trading with new issues brought in the previous week mostly stronger, sources said on Monday.

BNP Paribas SA’s 2.375% senior notes due 2020 traded 10 basis points better than where the paper priced on Thursday.

International Paper Co.’s long bonds brought on Thursday were quoted 11 bps tighter in secondary trading.

AT&T Inc.’s 4.75% bonds due 2046 that were sold in April traded flat to 1 bp softer.

The three-month Libor yield eased 1 basis point to 28 bps.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 bp tighter at a spread of 63 bps.

BNP Paribas tightens

BNP Paribas’ 2.375% notes due 2020 tightened to 83 bps offered in secondary trading, a market source said.

BNP Paribas sold $1.5 billion of the notes (A1/A+) at Treasuries plus 93 bps on Thursday.

The financial services company is based in Paris.

International Paper firms

International Paper’s 5.15% bonds due 2046 traded better than issuance at 204 bps offered, a market source said.

The company sold $700 million of the senior notes (Baa2/BBB/) on Thursday at Treasuries plus 215 bps.

The paper manufacturing and distributing company is based in Memphis, Tenn.

AT&T mostly unchanged

AT&T’s 4.75% bonds due 2046 traded flat to 1 bp softer at 206 bps offered, according to a market source.

The company sold $3.5 billion of the bonds (/BBB+/A-) on April 23 at a spread of Treasuries plus 215 bps.

The telecommunications company is based in Dallas.

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