Morning Commentary: AT&T bonds tighten; HSBC mostly flat; secondary trading volume down

By Cristal Cody

Eureka Springs, Ark., April 8 – AT&T Inc.’s notes (Baa1/BBB+/A-) tightened 10 basis points to 15 bps on Thursday and traded another 2 bps to 3 bps better in the secondary market early Friday.

In other secondary trading over the morning, HSBC Holdings plc’s 4.3% senior notes due 2026 were flat to 1 bp tighter.

Investment-grade corporate bond trading volume dropped to $18.8 billion on Thursday from $20.24 billion on Wednesday, according to Trace.

AT&T tightens

AT&T’s 5.65% bonds due 2047 tightened about 15 bps on Thursday and traded about 2 bps tighter at 223 bps bid at the start of the day, a source said.

The company sold $1.5 billion of the bonds on Jan. 29 at a spread of Treasuries plus 290 bps.

AT&T is a Dallas-based telecommunications company.

HSBC mostly unchanged

HSBC Holdings’ 4.3% notes due 2026 traded flat to about 1 bp tighter from Thursday at 215 bps offered, a market source said.

HSBC sold $3 billion of the notes (A1/A/AA-) on March 1 at a spread of 250 bps over Treasuries.

The banking and financial services group is based in London.

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