Yields on all but the longest-term U.S. government bonds edged higher after central-bank officials signaled they are hastening when they would start tightening monetary policy.
Turmoil caused by China Evergrande is hitting bonds of other Chinese companies and spurring some emerging-market funds to buy.
Bonds of other property developers dropped sharply on concerns of contagion in Chinese credit markets.
The $3 trillion market for low-rated companies’ debt is having its best year ever, powered by a rebounding economy and investors’ demand for any extra yield.
Yields edged higher early in the session, then declined after the Labor Department said the consumer-price index rose a seasonally adjusted 0.3% in August.
Managers of collateralized loan obligations are rushing to close deals ahead of the transition away from the London interbank offered rate.
Bonds from lower-rated Chinese property developers have fallen steeply in price after warnings of a potential default at Evergrande sent investors rushing to protect against trouble elsewhere in their portfolios.
High-interest loans to house flippers are a hot commodity on Wall Street, but inventory is scarce. Foreclosure moratoriums have shut off a big source, while competition from regular home buyers is stiff.
Junk-bond managers have rarely encountered less appealing terms. Many are responding by venturing into unfamiliar territory.
Larger investors are starting to buy up the debt behind loans to homeowners who want to reduce their dependence on electric grids vulnerable to severe storms.
State and local governments have borrowed about $10 billion so far this year, using the proceeds from pension obligation bonds to cover payments to retired city and school employees.
The employment data was seen as sign by some investors that the Delta variant could slow the U.S. economy’s recovery.
European government bonds fell on investors’ bets that rising inflation could prompt the European Central Bank to weigh scaling back stimulus measures.
Sales of securities backed by bundles of risky corporate loans set a 10-year record in August, thanks to improving corporate earnings and technical factors.
Investors keep buying U.S. Treasury securities, defying predictions for a broad selloff that would send bond yields back to their March highs.
Prices are surging as comments by President Biden ignite tax-increase fears and local governments weather the Covid-19 pandemic better than expected.
Wall Street firms are again packaging and selling mortgages that the government-backed firms can’t or won’t back.
Demand for debut bond issues is coming from investors seeking better fixed-income returns amid ultralow interest rates and record savings.
The closely watched spread between five- and 30-year Treasury yields has hardly changed after falling sharply when the Federal Reserve shifted its message in June.
The government’s campaign to reduce debt in sectors such as real estate has put many developers in a tight spot, sending high-yield bond prices tumbling.