A post Labor-day rush of bond issuance by U.S. investment-grade-rated companies added renewed pressure on long-end U.S. Treasuries, as some investors switch to buying top-rated corporate debt offering higher yields than those on government bonds, Reuters reported. At least 21 investment-grade rated bond offerings are expected to price on Tuesday, according to International Financing Review (IFR) data. Investors told Reuters they expect anywhere between $100 billion and $150 billion in new bond issuance this month. The average yield on U.S. investment-grade bonds was 5.73% as of Monday, compared to 5.47% at the start of the year and 2.44% in January 2022 when the Fed began hiking rates to combat inflation, according to ICE BAML data.
