corporate bonds

The extra premium that investors require to hold Treasurys over the long-term, known as a “term premium,” has been rising.

Nvidia became the latest tech giant to sell bonds on Monday, offering up $25 billion. Others — Amazon and Alphabet, notably — have also gone to the bond market in recent months.

Companies are issuing record amounts of corporate debt this year, even though the war pushed up yields. Analysts say that could continue, especially as tech companies finance AI projects.

These corporate bonds could end up competing for the same money that might otherwise go into U.S. Treasuries. That could drive interest rates higher.

Corporate bond issuance is a gauge that tells us how the broader economy is doing.

Corporate bond spreads have been relatively tight this year, implying that investors aren’t demanding much extra compensation to account for credit risk.

Borrowing isn’t cheap right now, especially for riskier businesses.

Investors expect a healthy economy and strength in the private sector, which is limiting the rise in corporate bond yields.

As government bond yields have fallen, corporate bonds have attracted more investors. The cash may boost private-sector spending.

Many investors see big companies as healthy and want to get into the market before the Federal Reserve cuts interest rates.