Morning Commentary: Investment-grade market activity thins; Verizon improves; AT&T softens

By Cristal Cody

Tupelo, Miss., April 11 – Investment-grade market activity slowed on Tuesday with no issuers in the early morning deal pipeline.

Supply is expected to top out at about $10 billion for the week. The bond markets will close early on Thursday and will be closed for the full day on Friday for the Good Friday holiday.

In the secondary market, Verizon Communications Inc.’s 4.125% notes due March 16, 2027 traded modestly better over the morning.

AT&T Inc.’s 4.25% notes due March 1, 2027 weakened in early secondary trading.

The three-month Libor yield was unchanged at 1.16%.

On Monday, $13.12 billion of high-grade bonds were traded, according to Trace.

Verizon better

Verizon Communications’ 4.125% notes due March 16, 2027 improved to 102.26 in the secondary market after trading last on Monday at 101.93, a market source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 basis points.

The telecommunications company is based in New York City.

AT&T weakens

AT&T’s 4.25% notes due March 1, 2027 softened to 102.08 on Tuesday from 103.10 on Monday, a market source said.

The company priced $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at 99.94 and a spread of Treasuries plus 180 bps.

AT&T is a Dallas-based telecommunications company.

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