Primary takes breather; Goldman, Morgan Stanley paper tightens; AT&T firms; Verizon eases

By Cristal Cody

Tupelo, Miss., Aug. 14 – Investment-grade primary action came to a stop on Thursday following about $16 billion of issuance brought over the first part of the week.

The primary market is expected to remain quiet on Friday.

“True summer week,” a market source said.

The Canadian bond markets buzzed earlier in the day on speculation of a potential bank deal, a source said. The week has seen one Canadian high-grade issuer tap the market.

“There was speculation this morning because the belly of the bank deposit note curve was widening from selling pressure,” the source said. “The speculation was a bank deal was coming, but nothing happened. It’s been very, very quiet.”

Investment-grade bonds were mostly better over the session, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 59 bps.

In the secondary market, Goldman Sachs Group Inc.’s 3.85% notes due 2024 tightened 6 bps, a source said.

Bank of America Corp.’s 4% notes due 2024 traded 5 bps better over the session, a market source said.

Morgan Stanley & Co. Inc.’s 3.875% notes due 2024 headed out 3 bps softer.

Bonds in the telecom sector were mixed, according to a market source.

AT&T Inc.’s 3.9% note due 2024 tightened 5 bps, while Verizon Communications Inc.’s senior notes were flat to softer in trading.

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