Midday Commentary: High-grade bond spreads unchanged at start of day; AT&T trades flat

By Cristal Cody

Tupelo, Miss., Nov. 14 - Investment-grade bonds opened mostly unchanged on Thursday after closing the previous session at tighter spreads, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point to a spread of 72 bps on Wednesday.

AT&T Inc. announced plans to bring a Canadian dollar-denominated offering of global notes due 2020, according to a prospectus supplement filed with the Securities and Exchange Commission.

In the secondary market, AT&T's notes traded mostly flat, a trader said.

"It's kind of a mixed bag this morning, but is basically unchanged," the trader said.

AT&T flat

AT&T's 4.3% global notes due 2042 (A3/A-/A) traded early Thursday at 173 bps bid, 168 bps offered, according to a trader. The notes have widened about 5 bps from where the issue traded on Oct. 10 at 167 bps bid, 162 bps offered.

In other secondary trading, AT&T's 2.625% notes due 2022 opened the day flat at 145 bps bid, 140 bps offered, the trader said.

The Dallas-based communications company sold $1.5 billion of the 2.625% notes due 2022 in December 2012 at a spread of 105 bps.

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