Midday Commentary: High-grade corporate bond spreads flat; Verizon eases in early trade

By Cristal Cody

Tupelo, Miss., March 25 - High-grade corporate bond spreads opened mostly flat on Tuesday as the U.S. primary market continues to slow this week, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 72 bps on Monday.

Verizon Communications Inc.'s notes (Baa1/BBB+/A-) traded slightly wider over the morning but continue to be among the most active investment-grade issues, a source said.

Verizon eases

Verizon's 5.15% notes due 2023 traded flat to 1 bp weaker at 126 bps offered, according to a market source.

The company 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.

Verizon's 6.55% bonds due 2043 eased 2 bps to 159 bps offered early Tuesday from the previous session, according to the market source.

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

The telecommunications company is based in New York City.

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