From Dow Jones & Company:

Corporate bond investors have been net sellers of five out of the seven Magnificent Seven components of the S&P 500 in recent days. Yield spreads between corporate bonds of the Magnificent Seven and 10-year Treasurys have tightened. Spreads have tightened and investors have chosen to be net sellers into the strength.

With the exception of Apple Inc. and Meta Platforms Inc., net selling has outpaced buying in corporate bonds for the Magnificent Seven, as the spreads have narrowed. Microsoft Corp.’s corporate bonds have drawn the heaviest selling, followed closely by Amazon.com Inc.’s. Alphabet Inc., Tesla Inc. and Nvidia Corp. have also seen more sellers than buyers.

The stocks have been in the spotlight for much of 2023 as the biggest contributors to the 24.3% rally in the S&P 500. The stocks have remained hot through this season’s Santa Claus rally as expectations build for the U.S. Federal Reserve to start cutting interest rates in the first part of 2024.



Read more: Yield spreads tighten on ‘Magnificent Seven’ corporate bonds