Fierce Demand for P&G Bond Spotlights Buyers Wary of Fed Cuts
- The 10-year note launched at 37 basis points over Treasuries
- That’s the narrowest risk premium for such debt on record
This article is for subscribers only.
Procter & Gamble Co.’s $1.35 billion debt sale is flashing one of the clearest signals yet that investors are binging in corporate debt markets before the Federal Reserve can pull interest rates lower.
Investors are demanding just 37 basis points in extra yield over comparable US Treasuries to buy the Pampers diaper maker’s new 10-year bond. That’s set to be the smallest risk premium on record for a sale of corporate bonds maturing in a decade in US investment-grade markets, according to data compiled by Bloomberg going back to 2000.