Verizon binges on bonds as market braces for Fed

Written By limadu on Rabu, 11 September 2013 | 21.29

NEW YORK (CNNMoney)

In what will likely be the biggest bond offering ever, the telecom giant is expected to announce a $49 billion bond sale to help fund its purchase of the remaining stake in Verizon Wireless from U.K. telecom Vodafone (VOD).

The Verizon bond sale is the latest sign that major corporations are anxiously anticipating a rise in long-term interest rates and are rushing to sell debt before a potential pullback on bond buying by the Federal Reserve. The Fed will meet next week and could discuss plans to taper the bank's bond buying program.

10-year Treasury yields are hovering near 3%, a level they haven't hit since July 2011.

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Stocks stalling: After rallying more than 3% over the past five trading days, the Dow Jones Industrial Average and the S&P 500 barely budged Wednesday. The Nasdaq dropped 0.4%.

Traders have pushed markets higher over the past few days as worries about the possibility of U.S.-led military strikes on Syria have receded. It now looks like a diplomatic resolution may be possible after the Syrian government said it would be willing to turn over its chemical weapons.

With little on the economic or corporate calendar, traders aren't expecting much volatility.

Related: Fear & Greed Index idling in neutral

The iPhone disappoints: Apple (AAPL, Fortune 500) shares fell more than 5%, a day after the company unveiled two new iPhones that were met with a lukewarm reception from analysts. Separately, Apple got the OK to run iPhones on China Mobile's exclusive network, in the latest sign that a deal between Apple and China Mobile (CHL) may be in the works.

Both European and Asian markets were mixed. To top of page

First Published: September 11, 2013: 9:52 AM ET


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