Morning Commentary: Sysco long bonds ease; AT&T bonds soft; high-grade credit spreads improve

By Cristal Cody

Tupelo, Miss., Sept. 25 – Long bonds in the high-grade market traded modestly weaker in the secondary market, while credit spreads improved early Friday.

Sysco Corp.’s 4.85% senior notes due 2045 were quoted softer in secondary trading but better than where the bonds priced on Wednesday.

AT&T Inc.’s 4.75% bonds due 2046, seen 7 basis points wider on Thursday, traded 3 bps weaker early in the session on Friday.

The three-month Libor yield was unchanged at 33 bps.

The Markit CDX North American Investment Grade 25 index was 1 bp tighter at a spread of 85 bps early Friday.

Sysco eases

Sysco’s 4.85% bonds due 2045 traded 2 bps to 4 bps softer in the 183 bps area, a market source said.

Sysco sold $500 million of the bonds (A2/A-) on Wednesday at a spread of Treasuries plus 190 bps.

The food service marketing and distribution company is based in Houston.

AT&T weaker

AT&T’s 4.75% bonds due 2046 eased 3 bps in secondary trading to 232 bps offered, according to a market source.

AT&T sold $3.5 billion of the bonds (/BBB+/A-) on April 23 at 215 bps over Treasuries.

The telecommunications company is based in Dallas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.