Midday Commentary: Investment-grade bonds soften; Verizon trades flat to slightly better

By Cristal Cody

Tupelo, Miss., March 12 - The deluge of corporate supply and geopolitical concerns weighed on the investment-grade bond market late Tuesday and into Wednesday's morning session, according to informed sources.

The Markit CDX North American Investment Grade series 21 index eased 1 basis point to close on Tuesday at a spread of 64 bps.

Verizon Communications Inc.'s senior notes (Baa1/BBB+/A-) priced on Monday were quoted flat to slightly better in secondary trading early Wednesday.

Verizon mixed

Verizon's 2.55% notes due 2019 firmed to 87 bps offered, according to a market source.

Verizon sold $500 million of the notes at 95 bps over Treasuries on Monday as part of a $4.5 billion five-part offering.

Verizon's tranche of 4.15% notes due 2024 were flat at 140 bps offered, a source said. The company sold $1.25 billion of the notes at 140 bps over Treasuries in Monday's deal.

The telecommunications company is based in New York City.

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