Junk Falls Into ‘Eye of the Storm’ With Recession Fear Reviving

Junk bonds are snapping a six-week winning streak and poised for more losses as inflation fears and economic slowdown zoom back into focus.

US high-yield bonds fell Friday and spreads have widened in the last five trading sessions, the longest bearish streak in six weeks, data compiled by Bloomberg show. Yields jumped by 16 basis points to 7.59% this week through Thursday, the first increase in seven weeks.

Read more: Global Credit Rally Sputters as Investors Reckon With Rate Hikes

While some investors see signs of inflation abating and potentially an easing in the pace of hiking from the Federal ...