Corporate Bond Buyers Seeking Yield Take Treasury Rout in Stride
- Investors read higher rates as confidence vote in U.S. economy
- Even tighter spreads are possible as yield hunters pile in
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It’ll take more than this week’s steep sell-off in Treasuries to deter corporate bond investors. The global rout may actually boost demand from yield-hungry buyers.
As Treasury yields touched the highest in seven years this week, investment-grade spreads in the U.S. fell to their lowest since April, while junk traded at the tightest since 2007.