Morning Commentary: High-grade activity quiet; Apple, Verizon bonds improve in early trade

By Cristal Cody

Tupelo, Miss., Oct. 14 – The high-grade bond market opened with light activity on Tuesday following the three-day holiday weekend and a move wider in spreads on Friday, according to market sources.

The Markit CDX North American Investment Grade series 23 index ended 2 basis points wider at a spread of 72 bps on Friday.

In the secondary market early Tuesday, Apple Inc.’s 4.45% notes due 2044 climbed more than a point, a market source said.

Bonds in the telecommunications sector traded mostly unchanged to modestly better over the morning after weakening in the previous week, a source said.

Verizon Communications Inc.’s 5.15% notes due 2023 were quoted slightly stronger in early trading.

Apple stronger

Apple’s 4.45% notes due 2044 (Aa1/AA+/) climbed to 106.47 in early trading, a market source said.

The notes traded last on Friday at 105.29.

Apple sold $1 billion of the notes at 99.459 to yield 4.483% on April 29.

The computer and mobile communications device company is based in Cupertino, Calif.

Verizon rises

Verizon’s 5.15% notes due 2023 (Baa1/BBB+/A-) rose to 112.91 early Tuesday from where the bonds ended on Friday at 112.29, a market source said.

The company sold $11 billion of the notes at 99.676 to yield 5.192% on Sept. 11, 2013.

The telecommunications company is based in New York City.

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