US corporate bond market decreases issuances due to Trump tariff announcements, spreads widen significantly

From Yahoo Finance: 2025-04-09 12:33:00

The U.S. corporate bond market has seen a sharp decrease in issuances following President Trump’s tariff announcements. Spreads have widened to their highest levels in nearly two years, with both investment-grade and junk bond spreads seeing the most significant widening since the regional banking crisis of 2023.

The bond market saw its first new deal in three days with a $4.2 billion transaction from Paychex. High-grade bond spreads tightened 2 basis points, while junk bond spreads were 4 bps tighter. However, both spreads may have widened again due to U.S. Treasury market volatility.

Benchmark 10-year U.S. Treasury note yields reached a seven-week high of 4.515% amid risk sentiment lowering. Some investment-grade companies opted to wait on issuing due to market volatility. Despite this, there were no signs of panic among investors in lower-risk debt securities.

A Treasury auction of $39 billion in 10-year notes priced at a high yield of 4.435%, lower than forecasts, indicating strong investor demand. Treasury yields rose after Trump announced a tariff pause, except for China, leading to uncertainty and potential volatility ahead.



Read more at Yahoo Finance: US corporate bond market dries up on Trump tariff volatility