High-grade market quiets; Airbus in deal pipeline; DTE Energy flat; Verizon, Duke Energy ease

By Cristal Cody

Tupelo, Miss., March 23 – Primary action in the investment-grade bond market came to a standstill on Thursday with corporate and sovereign issuers staying on the sidelines as attention turned to whether a U.S. health care replacement bill would pass Congress, according to market sources.

A House vote on the legislation expected on Thursday was delayed.

Looking ahead in primary action, Airbus Group SE is in the deal pipeline with a dollar senior notes offering.

The Markit CDX North American Investment Grade index was modestly tighter on the day at a spread of 68 basis points.

Bonds were mixed in the secondary market on Thursday.

DTE Energy Co.’s 3.8% senior notes due March 15, 2027 priced earlier in the month were unchanged.

The 3.8% notes were flat in secondary trading on Thursday at 101.43, a market source said.

Verizon Communications Inc.’s notes (Baa1/BBB+/A-) were mostly weaker on the day.

Verizon’s 4.125% notes due March 16, 2027 improved to 101.88 from 101.76 earlier in the day but remain soft from where the notes last traded on Wednesday at 102.16, a source said.

Verizon’s 2.625% notes due Aug. 15, 2026 were quoted about 1 bp weaker at 134 bps bid, according to a market source.

Duke Energy Corp.’s 2.65% senior notes due 2026 softened about 2 bps to 116 bps bid, a market source said.

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