What’s going on here?
Market volatility has halted corporate bond sales this week, as investors seek the safety of US Treasuries.
What does this mean?
Shaky markets have led several corporate bond issuers to delay their sales while investors flock to US government debt. Last week’s disappointing employment and manufacturing growth figures stoked recession fears, triggering a stock market decline and driving funds into Treasuries. This migration lowered Treasury yields and widened corporate bond spreads to their broadest levels since January. No investment-grade or junk bond deals were priced on Monday, marking only the 13th time this year without a deal outside holidays or Fridays.
Why should I care?
For markets: Seeking safety in government debt.
The demand for US Treasuries has pushed their yields down, making them more attractive compared to riskier corporate bonds. This has led corporate bond spreads to hit their highest levels this…
