AT&T Next in Line for Low Bond Yields (T, IBM, PG)

AT&T Inc. (NYSE: T) is planning to issue a benchmark offering of 3-, 5-, and 10-year notes as coupons on corporate bonds are approaching the record low of 3.45% set last August. AT&T would join other heavy hitters IBM Corp. (NYSE: IBM) and Proctor & Gamble Co. (NYSE: PG), both of which have issued corporate debt at remarkably low rates.

Earlier this year, IBM sold $1.5 billion in 3-year notes at 0.55% and P&G sold 10-year notes at 2.3%. At today’s US Treasury auction of $24 billion in 10-year notes, the US government will pay a yield of 2.02%.

The offering by AT&T will be its first since the company paid out about $4 billion following its failed bid for T-Mobile USA.