Global Junk Bonds Extend Selloff, Premiums at November 2023 High
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Global junk bonds extended a selloff Friday after China retaliated against US President Donald Trump’s latest tariffs and Federal Reserve Chair Jerome Powell signaled no hurry to lower interest rates.
The extra yield investors demand to own the risky debt instead of Treasuries widened a further 39 basis points Friday to 4.24 percentage points, the Bloomberg Global High Yield Corporate index shows. That’s the highest level since November 2023, and comes a day after the biggest jump in spreads since March 2020, Bloomberg-compiled data shows.