U.S. Steel Yield Surges as Metal Rout Imperils Turnaround
- Notes due 2020 capped a fifth straight weekly decline
- Hot-rolled steel coil is at the lowest since June 2009
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U.S. Steel Corp. bonds plunged, sending yields to record highs, as slumping metal prices hinder its efforts to return to profitability after three consecutive quarters of losses.
The Pittsburgh-based company’s $600 million in notes due 2020 capped a fifth straight weekly decline, pushing up yields to 20 percent. That’s a record 12 percentage points above an index of high-yield debt sold by materials companies. U.S. Steel is the index’s worst performer in the past month after Essar Steel Algoma, which filed for bankruptcy protection this week.