Midday Commentary: Investment-grade bond spreads tighten; DirecTV flat in early trade

By Cristal Cody

Tupelo, Miss., March 19 - Spreads opened tighter in the investment-grade bond market on Wednesday ahead of the Federal Reserve's rate decision, according to informed sources.

The Federal Open Market Committee concludes its first two-day meeting on Wednesday under Fed chairman Janet Yellen.

High-grade bonds traded mostly flat to better in early secondary trading, according to a market source.

The 4.45% senior notes due 2024 that DirecTV Holdings LLC and DirecTV Financing Co. brought on Monday traded unchanged, a source said.

The Markit CDX North American Investment Grade series 21 index closed on Tuesday 2 basis points tighter to a spread of 63 bps.

DirecTV flat

DirecTV's 4.45% notes due 2024 traded flat early Wednesday at 178 bps offered, according to a market source.

DirectTV sold $1.25 billion of the 10-year notes (Baa2/BBB/) on Monday at a spread of Treasuries plus 180 bps.

The digital entertainment company is based in El Segundo, Calif.

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