By Matt Tracy and Shankar Ramakrishnan
Aug 15 – Companies’ U.S. dollar bond issuance will likely carry September to one of the heaviest months for investment-grade supply this year, despite more volatility in Treasury yields as hopes for a bigger Federal Reserve interest rate cut were dimmed by recent data that pointed to still-sticky inflation, said bankers and strategists.
September has historically averaged roughly $140 billion of investment-grade bond issuance, according to data from Informa Global Markets.
But last year set a record for the busiest September with over $172 billion in new deals, as companies rushed to seize on healthy investor appetite for higher yields, according to the IGM data.
The latest inflation data this week showed U.S. producer prices surged while consumer prices rose in line with forecasts, in turn leading the market to place lower odds on a substantial interest rate cut from the Federal Reserve…
