Midday Commentary: Investment-grade bonds flat in early trade; Verizon long bonds widen

By Cristal Cody

Tupelo, Miss., Feb. 6 - High-grade credit spreads held mostly flat in early trading on Thursday in front of expected supply and a focus on corporate earnings reports and economic data, according to market sources.

The Markit CDX North American Investment Grade series 21 index ended Wednesday unchanged at a spread of 73 basis points.

Verizon Communications Inc.'s long bonds (Baa1/BBB+/A-) widened over the morning but remain among the most actively traded investment-grade issues, a source said.

Verizon eases

Verizon's 6.55% bonds due 2043 widened to 164 bps offered early Thursday, according to a market source.

The long bonds traded better on Wednesday at 154 bps offered.

Verizon sold $15 billion of the 30-year bonds at Treasuries plus 265 bps as part of the company's record $49 billion eight-part offering brought on Sept. 11.

The telecommunications company is based in New York City.

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