Midday Commentary: Investment-grade bonds softer; Verizon heavily traded

By Cristal Cody

Tupelo, Miss., Sept. 5 - Investment-grade bonds traded "marginally wider" early Thursday following the healthy new issue pace set on Tuesday and Wednesday, according to a market source.

The Markit CDX Series 20 North American Investment Grade index ended Wednesday flat at a spread of 83 basis points.

Verizon Communication Inc.'s bonds remain heavily traded following the company's announcement on Monday that it will purchase London-based Vodafone Group plc's 45% stake in Verizon Wireless, sources said.

Verizon's 2.45% notes due 2022 (Baa1/BBB+/A-) were quoted at 88.75 going out on Wednesday, according to Trace data.

Verizon sold $1.75 billion of the notes in November at 99.895 to yield 2.462%.

The New York City-based telecommunications company is expected to price as much as $25 billion of bonds in various currencies this year as part of the financing for the buyout.

Activity also was quiet early Thursday with desks lightly staffed for the Rosh Hashanah holiday and ahead of key labor data that will be released on Friday, market sources said.

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