Midday Commentary: Investment-grade bond market eases; Comcast notes rise in early trade

By Cristal Cody

Tupelo, Miss., Feb. 20 - Investment-grade bonds edged wider in early trading on Thursday on global concerns from weaker Chinese manufacturing data and continued unrest in the Ukraine, market sources said.

Still, high-grade credit spreads remain tight in the "front end of the curve," RBC Capital Markets, LLC analysts said in a note.

The Markit CDX North American Investment Grade series 21 index eased 2 basis points to a spread of 66 bps on Wednesday.

Comcast Corp.'s $2.2 billion two-part offering of senior notes (A3/A-/A-) brought on Wednesday rose slightly in secondary trading Thursday morning, according to market sources.

The company priced the deal following the announcement a week ago that it will acquire Time Warner Cable Inc. in a $45.2 billion all-stock deal.

Comcast's 3.6% notes due 2024, priced at 99.426 to yield 3.669% in a $1.2 billion offering, traded on Thursday higher at 99.70, according to a market source.

The tranche of 4.75% bonds due 2044 rose to 99.54 Thursday morning. Comcast sold $1 billion of the long bonds at 99.114 to yield 4.806%, a source said.

Comcast is a Philadelphia-based media, technology and entertainment company.

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