> The US junk bond rally came to a halt on Friday with the biggest one-day loss in six months, as the risk premium surged to near a four-month peak of 304 basis points. Yields climbed to 6.99%, the highest in more than two months.
> The losses accelerated after President Trump threatened to impose huge tariffs on imports from China and said he saw no reason to meet with Chinese President Xi Jinping, causing concerns about trade relations between the world’s two biggest economies.
> The weekly loss of 0.73% was also the biggest since April. The losses spanned across ratings amid the renewed tariff fears. Junk bond yields rose 15 basis on Friday and 31 basis for the week, the biggest increase in six months.
> CCC yields rose above 10% to a five-week high of 10.14% and spreads widened to a six-week high of 632 basis points. Spreads climbed 32 basis points on Friday, the most in one day since April. CCCs racked up a loss of 0.6% on Friday, the worst one-day loss in six months. CCCs closed the week with a loss of 1.05%, also the most in six months.
> The US junk bond rally came to a halt on Friday with the biggest one-day loss in six months, as the risk premium surged to near a four-month peak of 304 basis points. Yields climbed to 6.99%, the highest in more than two months.
> The losses accelerated after President Trump threatened to impose huge tariffs on imports from China and said he saw no reason to meet with Chinese President Xi Jinping, causing concerns about trade relations between the world’s two biggest economies.
> The weekly loss of 0.73% was also the biggest since April. The losses spanned across ratings amid the renewed tariff fears. Junk bond yields rose 15 basis on Friday and 31 basis for the week, the biggest increase in six months.
> CCC yields rose above 10% to a five-week high of 10.14% and spreads widened to a six-week high of 632 basis points. Spreads climbed 32 basis points on Friday, the most in one day since April. CCCs racked up a loss of 0.6% on Friday, the worst one-day loss in six months. CCCs closed the week with a loss of 1.05%, also the most in six months.
graph https://dgz78a1ch9fm7v.archive.ph/sxOOn/4d36a1090f1a44927848...