Midday Commentary: Investment-grade credit spreads steady; Verizon long bonds tighten

By Cristal Cody

Tupelo, Miss., Feb. 7 - The investment-grade bond market remained stable early Friday with the focus on the weaker January jobs report, according to informed sources.

The Department of Labor reported 113,000 jobs were added in January, below the 180,000 forecasted. The unemployment rate fell to 6.6% from 6.7% in December, the Labor Department said.

Bonds traded mostly tighter over the morning with spreads off the wides seen earlier in the week, a source said.

Verizon Communications Inc.'s long bonds firmed 4 basis points in secondary trading, according to a market source.

The Markit CDX North American Investment Grade series 21 index ended Thursday 3 bps tighter at a spread of 70 bps.

Verizon firms

Verizon's 6.55% bonds due 2043 (Baa1/BBB+/A-) firmed to 160 bps offered on Friday from 164 bps offered in the previous session, a source said.

Verizon sold $15 billion of the 30-year bonds at Treasuries plus 265 bps on Sept. 11.

The telecommunications company is based in New York City.

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