Midday Commentary: Investment-grade bond spreads flat to tighter at open; Verizon softens

By Cristal Cody

Tupelo, Miss., March 13 - High-grade bond spreads opened the day flat to slightly tighter following the weakness in the previous session, according to a market source on Thursday.

The Markit CDX North American Investment Grade series 21 index closed the previous day 1 basis point wider at a spread of 65 bps.

Bonds in the telecommunications sector remain among the most actively traded bonds after Verizon Communications Inc.'s $4.5 billion five-part offering at the start of the week, according to market sources.

Verizon's bonds (Baa1/BBB+/A-) were slightly softer in the morning session, a source said.

Verizon's 5.15% notes due 2023 traded flat to about 1 bp weaker at 133 bps offered, a source said.

Verizon sold $11 billion of the 10-year notes at Treasuries plus 225 bps as part of its $49 billion eight-tranche offering on Sept. 11.

The telecommunications company is based in New York City.

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