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Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: epicure who wrote (3682)	8/30/2000 6:47:20 PM
From: Captain Jack	Respond to of 4298

Just the kind of stuff the analysts do not want to read... NEW YORK, Aug 30 (Reuters) - U.S. corporate high-grade bonds turned a tad wider on Wednesday amid thin volume while spreads on AT&T Corp. <T.N> and Ford Motor Co. <F.N> debt remained significantly wider on the week, traders said. "The market is feeling kind of mushy right now, things are a bit weaker in very quiet trade," said one high-grade player of the day's session. Among active secondary market issues, telecommunications giant AT&T's notes due 2004 weakened by an additional three basis points to a 135 basis points bid, bringing total widening to about seven basis points since news on Tuesday of a possible downgrade by Standard & Poor's. Meanwhile, AT&T's notes due 2009 also moved out to a 205 basis points bid area, while its longer-dated 7.875 percent bonds due 2029 moved out to a 235 basis points bid, traders said. S&P said on Tuesday it might cut AT&T's AA-minus senior unsecured debt and corporate credit ratings, possibly by more than one notch. The debt, already under pressure due to an expected flood of upcoming telecom offerings, widened further, traders said. The telecom sector in general has widened some 20-30 basis points over the past few weeks as a building pipeline from European telecom issuers weighed on the market. Among other issues, debt of Ford Motor and its Ford Motor Credit Co. unit continued trading at weaker levels. Ford Motor's bonds due 2031 have moved out by 10 basis points to trade at a 221 basis points bid spread, while its unit's 10-year notes also widened by 10 basis points to trade at a spread of 201 basis points, traders said. Some market participants believe the bonds should bounce back as the auto giant is a large, liquid name. "It's a thin market right now, I don't think 30-year Fords are worth 220 (basis points), they're trading too cheap," said Ruth Mulligan, fixed-income portfolio manager at Massachusetts