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U.S. Corporate Bonds Are Having the Best August in Four Decades

  • Lower Treasury yields help drive investment-grade returns
  • Investors engaged in ‘a global up-in-quality trade’: Kimball
Views Of Manhattan As U.S. Stocks Fall
Photographer: Michael Nagle/Bloomberg

Investors in debt from blue-chip U.S. companies are on track for the best August in 37 years as corporate bonds benefit from the rally in Treasuries.

High-grade bonds returns stand at 3.3% so far this month, heading for the best August since 1982, according to data compiled by Bloomberg. This year, the bonds have gained the most of all major fixed-income assets with 14.1%. That’s the best return at this point of any year since 2009.