Blue-Chip Bond Yields Hit Highest Since 2009 While Fed Teases Hike
- Yield-to-worst increased to 6.15%, surpassing last year’s high
- Treasury yields extend selloff, climbing to highest since 2007
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Blue-chip bond yields have surged to the highest level since 2009 as Federal Reserve members continue to point toward an additional interest rate hike this year and a higher-for-longer regime.
The average US investment-grade yield-to-worst stood at 6.15% on Monday, surpassing last year’s high of 6.13%. Among the factors driving the rise in yields are “concerns around the fiscal picture,” according to Winnie Cisar, global head of strategy at CreditSights Inc., referring to the swelling federal budget deficit.