Midday Commentary: Investment-grade bonds 'stable' in early trade; Verizon notes mixed

By Cristal Cody

Tupelo, Miss., Feb. 5 - Investment-grade bonds were "stable" in early trading on Wednesday after credit spreads tightened in the previous session, according to a market source.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point to a spread of 73 bps on Tuesday.

In the secondary market, Verizon Communications Inc.'s bonds (Baa1/BBB+/A-) from the record $49 billion multi-tranche deal brought in September were mixed in heavier trading ahead of the company's planned euro and sterling notes offering, a source said.

Verizon mixed

Verizon's 5.15% notes due 2023 traded flat at 141 bps offered, according to a market source.

The notes widened from 132 bps bid, 129 bps offered in early January.

Verizon sold $11 billion of the 10-year notes at Treasuries plus 225 bps on Sept. 11.

Also in secondary trading, Verizon's 6.55% bonds due 2043 firmed about 5 bps to 154 bps offered, the source said. The long bonds traded at 152 bps bid, 149 bps offered at the start of the year.

Verizon sold $15 billion of the 30-year bonds at Treasuries plus 265 bps in the September offering.

The telecommunications company is based in New York City.

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