Midday Commentary: High-grade bond spreads flat; Verizon 5.15% notes due 2023 ease

By Cristal Cody

Tupelo, Miss., March 17 - Investment-grade bond spreads opened Monday flat as traders focused on economic data and as risk aversion faded following Crimea's weekend vote to secede from Ukraine and join the Russian Federation without any major repercussions, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point to a spread of 67 bps on Friday.

Bond spreads had widened late in the previous week after more than $40 billion of investment-grade bonds priced.

Verizon Communications Inc.'s notes (Baa1/BBB+/A-) opened mostly wider in secondary trading, according to a market source.

Verizon eases

Verizon's 5.15% notes due 2023 eased about 6 bps from the previous week to 139 bps offered early Monday, a market source said.

Verizon sold $11 billion of the 10-year notes at Treasuries plus 225 bps as part of its $49 billion eight-tranche offering on Sept. 11.

The telecommunications company is based in New York City.

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