US Junk Bonds Post Worst Losses in Six Months Amid Trade Tensions
By
zerosizedweasle
Lacks bite. And filling. And a copy-editor at the bakery.
Summary
US junk bonds experienced their worst one-day loss in six months, with risk premiums surging to 304 basis points and yields climbing to 6.99%. The selloff was triggered by President Trump's threats to impose large tariffs on Chinese imports and his statement that he saw no reason to meet with Chinese President Xi Jinping, raising concerns about US-China trade relations.
Key quotes
· 4 pulledThe US junk bond rally came to a halt on Friday with the biggest one-day loss in six months
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
President Trump threatened to impose huge tariffs on imports from China and said he saw no reason to meet with Chinese President Xi Jinping
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