Midday Commentary: Investment-grade bond spreads weaker; Verizon long bonds unchanged

By Cristal Cody

Tupelo, Miss., April 7 - Investment-grade bond spreads opened slightly wider on Monday while equities slipped, according to market sources.

The Markit CDX North American Investment Grade series 22 index ended unchanged on Friday at a spread of 67 basis points, though spreads closed at the wides of the day, a source said.

About $25 billion of new bonds priced in the previous week, and the primary market may be busy in the first half of the month ahead of the Easter holiday, according to sources.

In early trading on Monday, Verizon Communications Inc.'s 6.55% bonds due 2043 were unchanged from Friday, a market source said.

Verizon flat

Verizon's 6.55% bonds due 2043 traded flat at 151 bps offered early Monday, a source said.

Verizon sold $15 billion of the bonds (Baa1/BBB+/A-) at Treasuries plus 265 bps in a $49 billion eight-part offering on Sept. 11.

The telecommunications company is based in New York City.

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