- Credit Markets
Exchange-traded funds see record inflowsย as muni prices rebound after falling fairly steadily all year.
Exchange-traded funds see record inflowsย as muni prices rebound after falling fairly steadily all year.
A $5.5 trillion bond market supporting the U.S. mortgage industry is being roiled by fears it will be hit in the Federal Reserveโs battle against inflation.
Funds designed to soar when bonds crash have shined for investors who correctly predicted Federal Reserve rate hikes.
Treasury yields stabilize as investors worry about an economic slowdown and seek safe assets.
While investors anticipate further turmoil if the economy slides into recession, they say bond prices have fallen to levels that are too good to pass up.
Once the place to be for yield-seeking global investors, Asiaโs junk-bond market has shrunk drastically and new debt issuance has slowed to a trickle.
Average prices of U.S. high-yield bonds tumbled this week to their lowest levels since 2020, and some companies canceled new sales.
U.S. Treasury yields were choppy Wednesday after new data showed inflation in April was higher than analysts had expected.
The yield on the benchmark 10-year U.S. Treasury settled at 3.066%, its highest close since November 2018.
U.S. yields fell Wednesday after Federal Reserve Chairman Jerome Powell said central bank officials werenโt giving serious thought to raising short-term rates by more than half-a-percentage point.
The worst bond rout in decades hit a new milestone as the yield on the benchmark note touched above 3% before pulling back slightly. Prices for Treasurys, corporate bonds and municipal debt have slumped this year in response to the Fedโs moves to raise rates in an effort to rein in inflation.
Moves inside in the U.S. government bond market rout are undermining support for pandemic-era stock gains, the latest blow to the speculative bets that proliferated in the era of rock-bottom rates and economic stimulus.
Low-rated U.S. companies borrowed record amounts in the loan market last year, highlighting the surge in floating-rate debt as interest rates rise.
Rising yields are largely a good sign for the economy, but bondholders are paying for robust growth and some investors suspect the Fedโs rate message hasnโt sunk in.
A sharp selloff is interrupted by signs that some market watchers take as hopeful on the inflation front.
U.S. government bond yields extended recent gains, with mounting evidence that the Fed is planning to rapidly raise interest rates and reduce its bondholdings, lifting the 10-year Treasury yield above 2.6%.
Labor Department data showed that the economy added 431,000 jobs in March and that average hourly earnings increased 0.4% from the previous month.
The rout has robbed investors of a traditional haven as stocks and many other markets swing sharply
High prices, rising rates and declining application volumes are prompting lenders to expand their offerings to potential home buyers.
With expectations of more Fed rate increases, municipal-bond prices have grown increasingly volatile.
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