Billion-Dollar Corporate Bond Deals Hit Treasuries: Markets Wrap
- At least 40 firms are tapping high-grade debt markets Tuesday
- S&P 500 drops below 4,500; dollar rises to highest since March
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Treasuries sank as a handful of companies flooded the market with billions of dollars in debt sales before this month’s key economic data and the Federal Reserve’s rate decision. Stocks fell and the dollar hit the highest since March as a rally in oil added to concern about inflation.
Bonds were hit across the US curve, with 10-year yields approaching 4.3%. At least 40 businesses tapped high-grade markets around the world Tuesday, following a seasonal slowdown and the recent surge in Treasury rates. About half of those deals — or over $36 billion of new bonds — were sold in the US, making it the busiest session in terms of deal count and daily supply so far this year, according to data compiled by Bloomberg.