Treasury sell-off piles pressure on weakest US borrowers
Spreads on the riskiest junk debt have reached their highest reported level since the market turmoil that followed last year’s “liberation day” tariff blitz.
A sell-off in US Treasury bonds is adding pressure to the weakest US borrowers, according to the Financial Times.
Spreads on the riskiest junk debt have climbed to their highest reported level since market turmoil followed last year’s “liberation day” tariff blitz.
Junk debt refers to below-investment-grade borrowing, which is generally associated with higher default risk. Wider spreads indicate that investors are demanding greater compensation to lend to riskier borrowers.
The Financial Times did not specify the size of the spread increase, the bonds or indices measured, or the scale of the Treasury sell-off.
The report also did not identify which US borrowers are most affected.
