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.…
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.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
