Morning Commentary: AT&T notes improve modestly; Wells Fargo paper tightens

By Cristal Cody

Tupelo, Miss., May 5 – High-grade bonds traded modestly better over the morning with most of the market focus set on Friday’s release of the Labor Department’s April jobs report, sources reported.

AT&T Inc.’s 3.4% notes due 2025 brought in April firmed about 1 basis point in early trading.

Wells Fargo & Co.’s 3% senior notes due 2025 traded about 2 bps better but remain softer than issuance.

The three-month Libor yield was stable at 28 bps.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 63 bps.

AT&T improves

AT&T’s 3.4% notes due 2025 firmed about 1 bp to 147 bps offered, according to a market source.

The company sold $5 billion of the notes (/BBB+/A-) on April 23 at Treasuries plus 150 bps.

The telecommunications company is based in Dallas.

Wells Fargo better

Wells Fargo’s 3% senior notes due 2025 tightened about 2 bps to 108 bps offered, a market source said.

Wells Fargo sold $2.5 billion of the notes (A2/A+/AA-) at a spread of Treasuries plus 107 bps on Feb. 11.

The bank is based in San Francisco.

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