Global Credit Markets Wobble as War Deepens AI-Triggered Selloff
Smoke plumes following missile strikes in Tehran.
Photographer: Atta Kenare/AFP/Getty Images
Corporate bonds rallied relative to government debt, after weakening earlier in the session, as money managers grew more sanguine that US and Israeli airstrikes on Iran will have relatively little impact on the global economy.
In the US, a measure of perceived risk for investment-grade bonds ended up falling by nearly 0.01 percentage point, after spiking to its highest levels in months. The index rises as perceived credit risk climbs. Risk premiums on every high-grade bond sector narrowed slightly.