FINRA TRACE · 09 August 2026 · Source: FINRA
Key Data — 09 August 2026
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– YTD 2026 US corporate bond trading (through July): $68.1 billion average daily volume, +14.4% year-on-year
– YTD 2026 US corporate bond issuance (through July): $1,681.0 billion, +26.9% year-on-year
– Outstanding US corporate bonds (as of Q1 2026): $11.7 trillion, +3.0% year-on-year
– 10-year Treasury yield: approximately 4.74% (week ending 3 August), highest since January 2025
– US high yield option-adjusted spread: 2.71% (as of 6 August 2026)
– US investment grade OAS: approximately 77 basis points (May 2026 levels)
– 30-year Treasury yield reached highest level since 2007 during May 2026 spike
– Global high-yield bond default rates expected around 2% in 2026, well below long-term average of 4.5%
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– YTD 2026 US corporate bond trading (through July): $68.1 billion average daily volume, +14.4% year-on-year
– YTD 2026 US corporate bond issuance (through July): $1,681.0 billion, +26.9% year-on-year
– Outstanding US corporate bonds (as of Q1 2026): $11.7 trillion, +3.0% year-on-year
– 10-year Treasury yield: approximately 4.74% (week ending 3 August), highest since January 2025
– US high yield option-adjusted spread: 2.71% (as of 6 August 2026)
– US investment grade OAS: approximately 77 basis points (May 2026 levels)
– 30-year Treasury yield reached highest level since 2007 during May 2026 spike
– Global high-yield bond default rates expected around 2% in 2026, well below long-term average of 4.5%
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The United States corporate bond market concluded the trading week on a cautiously optimistic note as investors parsed fresh signals from Treasury Secretary Scott Bessent, whose interventions over the preceding days have been widely interpreted as an attempt to prevent long-dated government yields from climbing further into territory not seen for nearly two decades.
Over the course of the week, Bessent took steps that traders see as aimed at easing pressure on the Treasury market after long-term rates surged to a 19-year high, pushing up costs for everyone from homebuyers to vast swaths of corporate America. Early last year, after Trump’s return to the White House, Bessent said the administration’s main focus was on lowering 10-year yields, which serve as a baseline for mortgages and other types of loans, and that its fiscal policies would help accomplish that goal by reducing government spending.
The corporate credit market has thus far absorbed the rate volatility with remarkable composure. The 10-year Treasury yield finished near 4.74% in the week to 3 August, its highest level since January 2025, as investors reassessed the odds of additional monetary tightening. By early August 2026, the 10-year yield sat at approximately 4.62%. Despite these elevated rates, credit spreads have remained historically compressed, with the US high yield option-adjusted spread at 2.71% as of 6 August 2026.
Trading activity in US corporate bonds through July 2026 reached an average daily volume of $68.1 billion, representing an increase of 14.4% compared with the prior year period. Issuance has been particularly robust, with $1,681.0 billion raised through July, a 26.9% increase year-on-year, as companies have sought to lock in funding ahead of potential further volatility.
Corporate bond spreads—the extra yield investors receive relative to Treasuries—remain low, meaning that if the economy weakens or risk appetite deteriorates, spreads could widen and corporate bond prices could fall relative to Treasuries. Nevertheless, analysts continue to see favourable tailwinds for US corporate bonds, including a resilient economy, strong fundamentals, high yields, manageable debt maturities, and Federal Reserve policy that has become more accommodative. Investment grade corporates remain in a strong fundamental position and will benefit from stabilising interest rates.
Treasury yields moved lower on Tuesday 4 August, following oil prices, after new comments from Treasury Secretary Scott Bessent on the prospects of an agreement to open the Strait of Hormuz. The yield on the 10-year Treasury note fell more than 6 basis points to 4.619%. On 20 May 2026, Bessent had addressed the yield spike directly, calling elevated yields “transient” and linking them specifically to energy-related shocks stemming from the Iran conflict.
Default expectations remain benign, with global high-yield bond default rates projected at around 2% for the year, well below the long-term average of 4.5%. While the currently low spreads may result in underperformance relative to Treasuries in 2026, the high yields corporate bonds currently offer still make them attractive for investors with longer investment horizons. Investment-grade corporate bonds generally have low default rates, so over time their returns tend to exceed those of government securities.
The question for investors remains whether the Treasury’s efforts to stabilise the long end of the curve will prove durable, or whether the structural pressures of elevated government borrowing and persistent inflation risks will reassert themselves in the months ahead.
The United States corporate bond market concluded the trading week on a cautiously optimistic note as investors parsed fresh signals from Treasury Secretary Scott Bessent, whose interventions over the preceding days have been widely interpreted as an attempt to prevent long-dated government yields from climbing further into territory not seen for nearly two decades.
Over the course of the week, Bessent took steps that traders see as aimed at easing pressure on the Treasury market after long-term rates surged to a 19-year high, pushing up costs for everyone from homebuyers to vast swaths of corporate America. Early last year, after Trump’s return to the White House, Bessent said the administration’s main focus was on lowering 10-year yields, which serve as a baseline for mortgages and other types of loans, and that its fiscal policies would help accomplish that goal by reducing government spending.
The corporate credit market has thus far absorbed the rate volatility with remarkable composure. The 10-year Treasury yield finished near 4.74% in the week to 3 August, its highest level since January 2025, as investors reassessed the odds of additional monetary tightening. By early August 2026, the 10-year yield sat at approximately 4.62%. Despite these elevated rates, credit spreads have remained historically compressed, with the US high yield option-adjusted spread at 2.71% as of 6 August 2026.
Trading activity in US corporate bonds through July 2026 reached an average daily volume of $68.1 billion, representing an increase of 14.4% compared with the prior year period. Issuance has been particularly robust, with $1,681.0 billion raised through July, a 26.9% increase year-on-year, as companies have sought to lock in funding ahead of potential further volatility.
Corporate bond spreads—the extra yield investors receive relative to Treasuries—remain low, meaning that if the economy weakens or risk appetite deteriorates, spreads could widen and corporate bond prices could fall relative to Treasuries. Nevertheless, analysts continue to see favourable tailwinds for US corporate bonds, including a resilient economy, strong fundamentals, high yields, manageable debt maturities, and Federal Reserve policy that has become more accommodative. Investment grade corporates remain in a strong fundamental position and will benefit from stabilising interest rates.
Treasury yields moved lower on Tuesday 4 August, following oil prices, after new comments from Treasury Secretary Scott Bessent on the prospects of an agreement to open the Strait of Hormuz. The yield on the 10-year Treasury note fell more than 6 basis points to 4.619%. On 20 May 2026, Bessent had addressed the yield spike directly, calling elevated yields “transient” and linking them specifically to energy-related shocks stemming from the Iran conflict.
Default expectations remain benign, with global high-yield bond default rates projected at around 2% for the year, well below the long-term average of 4.5%. While the currently low spreads may result in underperformance relative to Treasuries in 2026, the high yields corporate bonds currently offer still make them attractive for investors with longer investment horizons. Investment-grade corporate bonds generally have low default rates, so over time their returns tend to exceed those of government securities.
The question for investors remains whether the Treasury’s efforts to stabilise the long end of the curve will prove durable, or whether the structural pressures of elevated government borrowing and persistent inflation risks will reassert themselves in the months ahead.
Data sourced from FINRA TRACE via public market activity reports. For non-commercial informational use only.