Midday Commentary: High-grade bond spreads unchanged; AT&T, Verizon flat in early trade

By Cristal Cody

Tupelo, Miss., Nov. 21 - Investment-grade bond spreads held steady over the morning on Thursday with new issues mostly flat in the secondary market, according to market sources.

"Generally, things are pretty unchanged, maybe a basis point better," a trader said.

In the secondary market, AT&T Inc.'s new 2.375% global notes due 2018 traded flat from where the notes went out in aftermarket trading on Wednesday, a trader said.

"They're better from the break," the trader said.

Verizon Communication Inc.'s notes have traded mostly unchanged over the month, according to a trader.

AT&T flat

AT&T's 2.375% global notes due 2018 (A3/A-/A) traded early Thursday at 97 bps bid, 95 bps offered, a trader said.

The notes firmed on the offered side from where the issue headed out at 97 bps offered in the previous session.

AT&T sold $1.6 billion of the notes with a spread of Treasuries plus 100 bps on Wednesday.

The telecommunications company is based in Dallas.

Verizon unchanged

In other trading on Thursday, Verizon's 5.15% notes due 2023 (Baa1/BBB+/A-) were seen at 156 bps bid, 154 bps offered, a trader said.

"Not much change," the trader said.

The issue traded at the end of October at 155 bps bid, 153 bps offered.

Verizon sold $11 billion of the 10-year notes with a spread of Treasuries plus 225 bps on Sept. 11 as part of its record $49 billion eight-part bond offering.

The telecommunications company is based in New York City.

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