Chill Hits US Blue-Chip Bond Market as Companies Eye Fed’s Path

Corporate borrowers are starting to pull back in US investment-grade debt markets as Federal Reserve officials embrace the prospect of keeping interest rates elevated for longer.

At least three companies opted against selling new bonds on Monday, according to an informal survey of debt underwriters, who declined to name the firms. That leaves only two foreign banks — Australia and New Zealand Banking Group and Credit Agricole— testing Wall Street’s appetite for offerings as US Treasury yields soar.

“Higher rates plus equity volatility make it not a great time to be in the market,” Winnie Cisar, global head ...