Midday Commentary: Investment-grade spreads unchanged; JPMorgan flat; AT&T better

By Cristal Cody

Tupelo, Miss., May 19 - Primary action in the investment-grade bond market is expected to stay full on Monday with deals on tap from Kimberly-Clark Corp., Amgen Inc., Nasdaq OMX Group, Inc. and others, according to sources.

Activity likely will slip for the rest of the short market week, sources said.

The bond markets will close early on Friday and close on May 26 for the Memorial Day holiday.

More than $30 billion of high-grade bonds priced in the previous week.

"I would guess it will be less [this week] with the holiday," one source said.

Investment-grade bond spreads were flat in early trading on Monday, according to a market source.

The Markit CDX North American Investment Grade series 22 index ended Friday unchanged at a spread of 65 basis points.

JPMorgan Chase & Co.'s 3.625% senior notes due 2024 were flat in early trading, according to a market source.

AT&T Inc.'s 4.35% bonds due 2045 (A3/A-/A) rose more than 2 points over the morning session, according to a market source.

JPMorgan unchanged

JPMorgan's 3.625% senior notes due 2024 (A3/A/A+) traded flat at 112 bps offered early Monday, according to a market source.

JPMorgan sold $2 billion of the notes on May 6 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

AT&T better

AT&T's 4.35% bonds due 2045 (A3/A-/A) rose to 95.04 in midday trading, up from 92.85 on Friday, according to a market source.

AT&T sold $3 billion of the bonds in 2012 at par.

The telecommunications company is based in Dallas.

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