Morning Commentary: Investment-grade bonds mixed; Verizon, Monsanto mostly flat

By Cristal Cody

Tupelo, Miss., July 8 – Investment-grade bonds were mixed in early trading on Tuesday, with credit spreads stable after weakening on Monday, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 56 bps in the previous session.

Bonds from Verizon Communications Inc. traded flat to about 1 bp wider in the secondary market, a source said.

Monsanto Co.’s 4.4% senior notes due 2044 were mostly unchanged, according to a market source.

Verizon bonds active

Verizon’s 6.55% bonds due 2043 traded unchanged to 1 bp wider at 152 bps offered, according to a market source.

The bonds (Baa1/BBB+/A-) rose to 125.06 over the morning from 124.59 on Monday, a market source said.

Verizon sold $15 billion of the bonds at Treasuries plus 265 bps, or 99.883 to yield 6.559%, on Sept. 11.

The telecommunications company is based in New York City.

Monsanto mostly flat

Monsanto’s 4.4% senior notes due 2044 (A3/BBB+/A-) were quoted flat to 1 bp weaker at 102 bps offered, a source said on Tuesday.

The notes climbed to 99.73 from 99.16 in the previous session, according to a market source.

Monsanto sold $1 billion of the bonds at 110 bps over Treasuries, or 99.207 to yield 4.448%, on June 26.

The agricultural company is based in St. Louis.

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