CREDIT DAYBOOK AMERICAS: Jobs Due; High-Grade Yields at 2025 Low

An environment of still-falling yields awaits investment-grade borrowers next week, but that could change if the employment report due Friday sparks major moves in the rates market.

• Average yields for US high-grade corporate debt finished Thursday at 4.84%, the lowest since last October, while spreads — currently at 77 basis points — are poised to tighten for the week after two-straight weeks of modest widening
  • Helping keep premiums historically narrow has been what JPMorgan calls the slowest year-over-year growth rate for investment-grade bonds outstanding the past two decades at 1.3%
• Today’s employment report should show improved hiring in August amid ...