Morning Commentary: Investment-grade bond spreads stable; eBay tightens; AT&T slips

By Cristal Cody

Tupelo, Miss., Aug. 5 – Investment-grade bonds were stable early Tuesday as traders focused on expected primary action later in the session, market sources said.

Tyson Foods Inc. is set to bring a four-part offering of notes.

High-grade corporate bonds traded mostly better over the morning after improving on Monday, sources said.

The Markit CDX North American Investment Grade series 22 index closed on Monday 3 basis points tighter at a spread of 64 bps.

eBay Inc.’s 2.2% senior notes due 2019 tightened on Monday and traded early Tuesday about 3 bps tighter, a market source said.

AT&T Inc.’s 4.35% bonds due 2045 (A3/A-/A) opened the session nearly a point lower in stronger trading activity, according to a market source.

eBay firms

eBay’s 2.2% notes due 2019 (A2/A/A) traded early Tuesday at 55 bps offered, better than where the notes were seen on Monday at 58 bps offered, according to a market source.

eBay sold $1.15 billion of the five-year notes on July 23 at a spread of Treasuries plus 60 bps.

The global online commerce and payments platform company is based in San Jose, Calif.

AT&T down

AT&T’s 4.35% bonds due 2045 (A3/A-/A) fell to 93.90 to yield 4.727% in early trading on Tuesday, a market source said.

The bonds last traded on Monday at 94.54 to yield 4.686%.

AT&T sold $3 billion of the bonds in 2012 at par.

The telecommunications company is based in Dallas.

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