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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (2520)	6/1/1998 4:53:00 PM
From: Caxton Rhodes	Read Replies (2) \| Respond to of 11568

wcom debt offering Monday June 1, 4:06 pm Eastern Time US CORP BONDS-Union Pacific hit again, market weak NEW YORK, June 1 (Reuters) - Union Pacific Corp. (UNP - news) bonds were hit by another round of bad news, while the broader high-grade corporate bond market weakened in reaction to supply concerns, traders said on Monday. ''People are bracing for a pickup in issuance,'' said one high-grade trader. ''Everything feels as little softer now.'' The weight of a growing forward calendar pushed high-grade spreads wider by one to two basis points on the day, traders said. Meanwhile, prices in the junk bond market ended mostly unchanged. A high-grade trader said spreads in the utility sector were particularly soft in anticipation of an upcoming $3.5 billion (proceeds) mega-offering from Niagara Mohawk Power Corp (NMK - news). While the New York state utility is rated speculative grade (Ba3/BB-), its upcoming bond deal is expected to garner considerable interest from cross-over buyers. Elsewhere, spreads on outstanding bonds of WorldCom Inc. (WCOM - news) widened slightly in secondary trading in reaction to market talk that the telecommunications company is close to launching a debt offering, traders said. Calls to a WorldCom spokeswoman were not immediately returned. Officials at Salomon Smith Barney Inc., the underwriter of prior WorldCom deals, were unavailable. The company is expected to tap the bond market in the coming months in order to raise funds for its planned purchase of MCI Communications Corp (MCIC - news), sources said. In secondary trading, Union Pacific bond spreads widened around four basis points after the railroad company's chief financial officer resigned.