(Bloomberg) — Wall Street saw another busy session of bond sales as issuers looked to borrow before key economic data later this week.
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Treasuries were mixed after a $42 billion auction of seven-year notes and a heavy slate of new corporate debt. Seven more issuers came forward to sell US investment-grade bonds, building off Monday’s surge that saw the most deals in a single day so far this year.
Investors are contending with an erosion in expectations for how much the Federal Reserve will lower rates and an onslaught of new corporate issuance that has given yield-seeking investors ample alternatives. Traders no longer expect the Fed to cut rates by more than 75 basis points in 2024, bringing their view in line with what policymakers have indicated as the likeliest outcome.
“We continue to recommend investors act soon to lock in currently attractive bond yields,” said Solita Marcelli at UBS Global Wealth…
