Credit Markets Wobble as Fed Speak, Data Fan Rate-Hike Angst
- Average investment-grade yield hits 6.15%, highest since 2009
- Strong job openings data suggests Fed has more work to do
Traders work on the floor of the New York Stock Exchange.
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Conditions are deteriorating across all corners of the corporate credit market amid growing concern over the prospect of interest rates staying elevated for an extended period.
The average yield on US blue-chip bonds stood at 6.15% Monday, topping last year’s high of 6.13%. Investment-grade credit spreads have widened 11 basis points from the lows of 2023 seen in July. At least two corporate borrowers stood down from issuing Tuesday as volatility pushed Treasury rates higher and stocks lower.