Primary pauses for FOMC; Oracle, AT&T mixed; Verizon weak

By Aleesia Forni and Cristal Cody

Virginia Beach, June 17 – The investment-grade primary took a pause on Wednesday, as the market focused on the release of the Federal Reserve’s statement following its two-day Federal Open Market Committee meeting.

The Fed said that U.S. economic activity has been expanding moderately following little change during the first quarter and will likely warrant a rate hike by the end of this year.

In total, this week has hosted roughly $9.1 billion of new investment-grade issuance.

Primary activity is expected to pick up in the day ahead, with a “very busy” Thursday session expected, one market source said.

Investment-grade corporate bonds and credit spreads were mostly weak over the trading session on Wednesday, sources said.

Oracle Corp.’s senior notes (A1/AA-/A+) were mixed in afternoon trading before the release of the company’s fourth-quarter earnings report.

Apple Inc.’s bonds (Aa1/AA+/) traded 2 bps to 3 bps weaker.

Microsoft Corp.’s 2.7% notes due 2025 widened 3 bps.

AT&T Inc.’s bonds (/BBB+/A-) were mixed with the short-dated notes mostly tighter.

Verizon Communications Inc.’s 3.5% notes due 2024 widened 10 bps over the day.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 70 bps.

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