Morning Commentary: High-grade primary action quiet; AutoZone up in early secondary trading

By Cristal Cody

Tupelo, Miss., April 21 – High-grade primary action is expected to stay quiet on Friday with few issuers willing to carry risk over the weekend during the first round of France’s presidential election, sources report.

In the secondary market, AutoZone, Inc.’s 3.75% senior notes due June 1, 2027 traded more than 2 points better as the session got underway on Friday.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 improved modestly.

Investment-grade secondary market volume totaled $17.02 billion on Thursday, down slightly from the $17.5 billion of bonds traded on Wednesday, according to Trace.

AutoZone stronger

AutoZone’s 3.75% notes due June 1, 2027 rose to 103.51 in secondary trading over the morning after heading out on Thursday at 101.02, according to a market source.

The notes opened Friday’s session at 101.298.

AutoZone (Baa1/BBB/BBB) sold $600 million of the notes on April 6 at 99.995 to yield 3.75%, or a spread of Treasuries plus 140 basis points.

The auto parts and supplies retailer is based in Memphis.

Verizon modestly better

Verizon Communications’ 4.125% notes due March 16, 2027 traded modestly better at 102.94 early Friday from where the notes last traded on Thursday at 102.77, a market source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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