Morning Commentary: Investment-grade bonds mixed; Morgan Stanley, AT&T notes tighten

By Cristal Cody

Tupelo, Miss., Aug. 28 – High-grade corporate bonds were mixed in secondary trading early Friday, while much of the market’s focus is on the Federal Reserve’s annual Jackson Hole, Wyo., economic policy conference, sources said.

Morgan Stanley’s 4% senior notes due 2025 were quoted more than 5 basis points tighter.

AT&T Inc.’s 3.4% notes due 2025 traded better early in the session.

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

Morgan Stanley better

Morgan Stanley’s 4% notes due 2025 were quoted early Friday at 154 bps offered in the secondary market, a source said.

The paper traded late Thursday afternoon 10 bps tighter at 160 bps bid.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at a spread of Treasuries plus 165 bps.

The financial services company is based in New York City.

AT&T notes tighten

AT&T’s 3.4% notes due 2025 firmed to 182 bps offered, better than where the bonds headed out on Thursday 7 bps tighter at 187 bps bid, a market source said.

AT&T sold $5 billion of the notes (/BBB+/A-) on April 23 at 150 bps over Treasuries.

The telecommunications company is based in Dallas.

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