Morning Commentary: Japan International Cooperation markets bonds; Verizon softens; AT&T better

By Cristal Cody

Tupelo, Miss., April 20 – The investment-grade bond market got off to a mostly quiet start on Thursday with one issuer in the day’s deal pipeline.

The Japan International Cooperation Agency (A+) is expected to sell guaranteed bonds talked to price in the mid-swaps plus 65 basis points area on Thursday.

The non-callable global notes due April 27, 2027 will be guaranteed by Japan.

BofA Merrill Lynch, BNP Paribas Securities Corp. and Mizuho Securities USA Inc. are the bookrunners.

Verizon Communications Inc.’s bonds have been active over the week in secondary trading. The company’s 4.125% notes due March 16, 2027 traded modestly weaker at the start of the session.

AT&T Inc.’s 4.25% notes due March 1, 2027 traded slightly better over the morning.

Secondary market volume has climbed over the week, rising to $17.5 billion on Wednesday from $16.5 billion on Tuesday and $9.6 billion on Monday, according to Trace.

Verizon softens

Verizon Communications’ 4.125% notes due March 16, 2027 slipped to 102.74 early Thursday after trading as high as 104.58 on Wednesday morning, a market source said.

The notes softened over the afternoon in the previous session and headed out on Wednesday at 103.32.

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.

AT&T improves

AT&T’s 4.25% notes due March 1, 2027 improved to 102.82 early Thursday from 102.66 on Wednesday, a market source said.

The company priced $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at 99.94 and a spread of 180 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

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