Morning Commentary: Investment-grade pricing action mostly quiet; AT&T, Verizon notes improve

By Cristal Cody

Tupelo, Miss., March 24 – AT&T Inc. priced a $500 million offering of floating-rate notes early on Friday.

No other issuers were reported in the deal pipeline following a lack of supply on Thursday. Market attention remained centered on a House vote on a replacement for the Affordable Care Act. A vote expected on Thursday was delayed until Friday.

In the secondary market, bonds in the telecommunications sector traded slightly better.

AT&T’s 4.25% notes due March 1, 2027 improved modestly over the morning.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 made slight gains from Thursday.

Secondary trading volume totaled $17.7 billion on Thursday, compared to $19.16 billion on Wednesday, $20.52 billion on Tuesday and $13.7 billion on Monday, according to Trace.

AT&T gains

AT&T’s 4.25% notes due March 1, 2027 climbed to 101.40 in early secondary trading on Friday from where the notes last traded in the previous session at 100.54, a market source said.

AT&T priced $2 billion of the 10-year notes (Baa1/BBB+/A-) on Jan. 31 at 99.94 and a spread of Treasuries plus 180 basis points.

AT&T is a Dallas-based telecommunications company.

Verizon better

Verizon Communications’ 4.125% notes due March 16, 2027 traded better early Friday at 101.94, a market source said.

The notes last traded on Thursday at 101.88.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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