Bonds in Longest Rally Since March, Swaps Dive: Credit Markets

Debt investors are signaling renewed confidence in the global economy, snapping up new securities from companies at the fastest pace since March and driving corporate bonds to their longest rally in four months.

Relative yields on the more than 8,500 bonds in Bank of America Merrill Lynch’s Global Broad Market Corporate Index fell for the fourth straight day, the longest stretch since the six days ended March 11. Increased demand allowed retailer Target Corp. to raise $1 billion in its first bond sale in more than two years, while Dutch chipmaker NXP BV, whose credit ratings are at the lowest end of the junk spectrum, increased its debt offering to $1 billion from $600 million.