Midday Commentary: Investment-grade bonds better in early trade; Verizon tightens

By Cristal Cody

Tupelo, Miss., Jan. 28 - Market tone improved early Tuesday with high-grade bond spreads tighter in morning trading, according to informed sources.

The Markit CDX North American Investment Grade series 21 index ended Monday unchanged at a spread of 73 basis points.

"Credit spreads are slightly narrower this morning, and have now retraced about one-third of the recent move wider," RBC Capital Markets, LLC analysts said in a note on Tuesday.

Verizon Communications Inc.'s notes (Baa1/BBB+/A-) traded slightly better in the secondary market, a source said.

Verizon firms

Verizon's 5.15% notes due 2023 firmed about 5 bps from the previous day to 138 bps offered in secondary trading, a marker source said on Tuesday.

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

The telecommunications company is based in New York City.

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