Morning Commentary: Investment-grade credit spreads widen; AT&T eases in secondary trading

By Cristal Cody

Tupelo, Miss., Aug. 20 – High-grade credit spreads continued to widen over the morning on Thursday, while high-grade corporate bonds traded mostly softer, sources said.

The Markit CDX North American Investment Grade index opened the session 2 basis points wider at a spread of 81 bps, the widest range over the past year.

The three-month Libor yield was unchanged at 33 bps.

In the secondary market, AT&T Inc.’s 3.4% notes due 2025 traded 3 bps weaker over the morning.

AT&T notes soften

AT&T’s 3.4% notes due 2025 eased 3 bps to 191 bps offered, a market source said early Thursday.

The notes (/BBB+/A-) headed out on Wednesday unchanged at 186 bps bid.

AT&T sold $5 billion of the notes on April 23 at a spread of Treasuries plus 150 bps.

The telecommunications company is based in Dallas.

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