Investment-grade primary market quiet; market activity slows; Time Warner 2.95% notes firm

By Cristal Cody

Eureka Springs, Ark., Dec. 19 – No reported issuers were in the high-grade primary market on Monday as trading desks thin ahead of the Christmas holiday and with market attention focused on the Electoral College voters’ approval of Donald Trump as the next U.S. president.

Little if any deal volume is expected over the week.

The bond markets will close early on Friday and will be closed on Dec. 26.

The Markit CDX North American Investment Grade index tightened about 1 basis point over the day to close at a spread of 68 bps.

Bonds were mixed in the secondary market during the session.

AT&T Inc.’s 4.125% notes due 2026 were unchanged from Friday at 157 bps bid, according to a market source on Monday afternoon.

The company priced a $900 million add-on to the bonds on May 3, 2016 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29, 2016 in a $1.5 billion offering at 195 bps over Treasuries.

Time Warner Inc.’s 2.95% notes due 2026 tightened 2 bps on Monday.

AT&T announced plans in October to acquire Time Warner in an $85.4 billion cash-and-stock deal.

Duke Energy Corp.’s 2.65% senior notes due 2026 traded flat on the day.

Earlier in the session, UnitedHealth Group Inc.’s 3.45% notes due 2027 were quoted wrapped around issuance in secondary trading.

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