Morning Commentary: High-grade corporate bonds flat to better; AT&T firms; JPMorgan better

By Cristal Cody

Tupelo, Miss., Jan. 21 – High-grade corporate bonds were mixed at the start of trading early Wednesday, while bank and financial paper traded flat to modestly better, according to market sources.

AT&T Inc.’s 4.8% bonds due 2044 improved 2 basis points in early secondary trading, a source said.

JPMorgan Chase & Co.’s notes (A3/A/A+) traded 1 bp to 4 bps better, according to a market source. The company’s paper had widened following the company’s $6.15 billion two-part offering of notes on Jan. 15.

The Markit CDX North American Investment Grade series 23 index ended 1 bp wider at a spread of 73 bps on Tuesday.

AT&T firms

AT&T’s 4.8% bonds due 2044 (A3/A-/A) tightened 2 bps to 206 bps offered in the secondary market, a source said.

AT&T sold $2 billion of the notes on June 3 at a spread of Treasuries plus 140 bps.

The telecommunications company is based in Dallas.

JPMorgan improves

JPMorgan Chase’s 3.125% notes due 2025 firmed 1 bp to 133 bps offered, a market source said.

The paper was quoted at 149 bps offered on Friday.

JPMorgan Chase priced $2.5 billion of the notes at Treasuries plus 145 bps on Jan. 15.

The financial services company is based in New York City.

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