JPMorgan Is Bullish on Blue-Chip Bonds, Says Spreads to Tighten

JPMorgan Chase & Co. has turned bullish on US investment-grade bonds and now expects spreads on the securities to tighten by 12 basis points — a reversal from its November projection.

In November, the bank forecast that spreads on its JULI index of US high-grade credit could widen by 15 basis points to 110 basis points. In late January, spreads shrank to an all-time low of 82 basis points, subsequently widening in February to notch their worst month since September 2022, strategists including Nathaniel Rosenbaum wrote in a Monday note.