Primary quiets in volatile market; GE Capital eases; AT&T, Verizon short-dated notes weak

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 14 – Macquarie Bank Ltd. sold a $750 million offering of five-year bonds on Wednesday. And Freddie Mac announced price talk for a planned benchmark issue of Reference Notes due Jan. 27, 2017 in the 11.5 basis point area over Treasuries.

But volatile market conditions kept most issuers on the sidelines.

“Saw a weaker tone to the market overall today,” one market source said, adding that there was “nothing happening” in the investment-grade space.

So far this week, roughly $15.25 billion of new issuance has priced, slightly more than half of the $30 billion expected for the week.

Bonds were mixed in secondary trading, with issues mostly flat to wider in afternoon trading, according to market sources.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 72 bps.

General Electric Capital Corp.’s existing 3.45% notes due 2024 widened about 4 bps on the day, a source said.

Bonds in the telecommunications sector softened, more so on the short end of the curve, according to a market source.

AT&T Inc.’s 3.9% notes due 2024 were quoted nearly 10 bps wider, while the tranche of 4.8% bonds due 2044 eased 3 bps.

Verizon Communications Inc.’s 4.15% senior notes due 2024 traded more than 5 bps weaker. Verizon’s longer-dated bonds (Baa1/BBB+/A-) headed out flat.

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