Junk Bonds Snap Three-Week Rally in Europe Before Fed Minutes
Junk-rated corporate bonds slumped for a fourth day in Europe, paring the longest rally in eight months as investors await more clarity on the Federal Reserve’s timing for tapering stimulus.
Bonds from companies including New World Resources Plc (NWR) and Italcementi SpA (IT) lost an average 0.45 cents on the euro since Aug. 14 to reach 143.96 cents yesterday, according to Bloomberg bond index data. That’s after they increased 1.8 cents during a near three-week rising streak, the longest stretch of gains since December, the data show.
To contact the reporter on this story: Katie Linsell in Madrid at firstname.lastname@example.org
To contact the editor responsible for this story: Shelley Smith at email@example.com