Credit Spreads Weather Recent Rise in U.S. Treasury Yields Relatively Well -- Market Talk

0527 GMT - Credit spreads for investment-grade and high-yield corporate bonds have remained relatively stable despite recently surging U.S. Treasury yields, BondBloxx Investment Management's JoAnne Bianco says in a note. "The fact that credit spreads remain contained despite the significant selloff in long-dated U.S. Treasurys argues against this being a classic risk-off environment," the senior investment strategist says. Instead, the current environment is more of a term-premium and rates repricing event rather than a signal that corporate bond fundamentals are deteriorating, she says. "In other words, the markets are not pricing broad corporate credit problems. Most of the pain in fixed income has come from duration exposure, not spread widening," Bianco says. (emese.bartha@wsj.com)

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October 14, 2026 01:27 ET (05:27 GMT)