More talk about corporate debt issuance pushing up yields

<p>The bond rout on Friday and today has been a tough one to explain. Oil prices have risen but nothing has materially changed in the fundamental or Fed view.</p><p>Earlier, <a href="https://www.forexlive.com/news/australian-dollar-touches-the-low-of-the-year-then-hesistates-20230905/" target="_blank" rel="follow">I brought </a>you talk that corporate bond issuance was something people in the bond market were citing as a reason for the uptick in yields. That thinking is getting more attention now as the market dwells on the puzzling move.</p><p>US yield are up 8-9 basis points across the Treasury curve today and Reuters is <a href="https://piqsuite.com/reuters/post-labor-day-corporate-debt-spree-revives-us-treasury-selloff" target="_blank" rel="nofollow">highlighting </a>investment grade issuance. They highlight a potential sale of $100-$150 billion in corporate debt this month.</p><p>Looking ahead, the thinking in the bond market is that the rate-lock hedging that led to a bond slump will unwind after the issuance and that will lead to a bid in bonds.</p>

This article was written by Adam Button at www.forexlive.com.