FINRA TRACE · 04 August 2026 · Source: FINRA
Key Data — 04 August 2026
**
– 10-year Treasury note yield: 4.70%, down 5 basis points on the day
– 30-year Treasury bond yield: 5.23%, down 4 basis points
– US Treasury yield curve (August 4, 2026): 1-Year 4.00%, 2-Year 4.21%, 5-Year 4.34%, 10-Year 4.63%, 30-Year 5.20%
– ICE BofA US Corporate Index option-adjusted spread: 77 basis points (as of mid-May 2026), well inside the 10-year average of approximately 130 basis points
– Investment grade corporate bond index effective yield: 5.22%
– YTD 2026 US corporate bond trading (through June): $69.1 billion average daily volume, up 14.5% year-over-year
– YTD 2026 US corporate bond issuance (through June): $1,522.8 billion, up 28.1% year-over-year
– US corporate bonds outstanding (as of Q1 2026): $11.7 trillion, up 3.0% year-over-year
– Market theme: “Hopes for a deal to revive the Strait of Hormuz lifted stocks toward all-time highs and bonds rose as oil sank”
– West Texas Intermediate crude fell 5% on optimism surrounding Middle East mediation efforts
*Note: Specific daily FINRA TRACE volume breakdowns (IG vs HY volumes, advances/declines, most active bonds) for August 4, 2026 were not available through web search.*
**
– 10-year Treasury note yield: 4.70%, down 5 basis points on the day
– 30-year Treasury bond yield: 5.23%, down 4 basis points
– US Treasury yield curve (August 4, 2026): 1-Year 4.00%, 2-Year 4.21%, 5-Year 4.34%, 10-Year 4.63%, 30-Year 5.20%
– ICE BofA US Corporate Index option-adjusted spread: 77 basis points (as of mid-May 2026), well inside the 10-year average of approximately 130 basis points
– Investment grade corporate bond index effective yield: 5.22%
– YTD 2026 US corporate bond trading (through June): $69.1 billion average daily volume, up 14.5% year-over-year
– YTD 2026 US corporate bond issuance (through June): $1,522.8 billion, up 28.1% year-over-year
– US corporate bonds outstanding (as of Q1 2026): $11.7 trillion, up 3.0% year-over-year
– Market theme: “Hopes for a deal to revive the Strait of Hormuz lifted stocks toward all-time highs and bonds rose as oil sank”
– West Texas Intermediate crude fell 5% on optimism surrounding Middle East mediation efforts
*Note: Specific daily FINRA TRACE volume breakdowns (IG vs HY volumes, advances/declines, most active bonds) for August 4, 2026 were not available through web search.*
**
**
US corporate bonds strengthened on Tuesday as Treasury yields retreated from their recent peaks, with market sentiment bolstered by renewed optimism surrounding diplomatic efforts in the Middle East. The yield on the benchmark ten-year Treasury note fell five basis points to 4.70 per cent, offering respite to credit markets that had endured weeks of upward pressure on borrowing costs.
Hopes for a deal to revive the Strait of Hormuz lifted risk assets broadly, whilst bonds rose as crude oil prices tumbled. West Texas Intermediate crude fell 5 per cent on optimism that mediators would broker a settlement, easing fears of American military action against Iran. The sharp decline in energy prices provided welcome relief for fixed income investors who had grown increasingly concerned about the inflationary implications of elevated oil costs.
The corporate credit market continues to exhibit remarkable resilience despite yields having reached their highest levels in nearly two decades. The investment grade corporate bond index effective yield stood at 5.22 per cent, a level not sustained since the mid-2000s. Credit spreads remained compressed, with the ICE BofA US Corporate Index option-adjusted spread at 77 basis points, well inside the 10-year average near 130 basis points, reflecting continued confidence in corporate fundamentals despite elevated macroeconomic uncertainty.
Investors continued to evaluate the outlook for Federal Reserve monetary policy. Markets are currently pricing in about a 65 per cent chance of a 25 basis point rate rise in September after the central bank held rates steady in July, though three policymakers dissented from that decision. The prospect of further tightening has weighed on duration-sensitive assets in recent weeks, though Tuesday’s rally suggested some of this concern had been priced into the market.
Activity in the US corporate bond market has been robust this year, with trading volumes through June averaging $69.1 billion daily, up 14.5 per cent year-over-year. The first quarter produced the largest quarterly corporate bond issuance total since the second quarter of 2020, at $775.2 billion. This surge in supply has been absorbed readily by institutional buyers, with the broad-market investment grade ETF complex absorbing capital from both retail rebalancers and institutional allocators rotating out of money-market funds.
Looking ahead, bond dealers expect the US Treasury will need to increase the sizes of at least some fixed-rate borrowing programmes next year, a development that could put further upward pressure on yields. The ten-year Treasury yield is expected to hold in the 4 to 4.5 per cent range, according to analysts, although risks remain tilted to the upside. Geopolitical risks, particularly in the Middle East, have become more salient for bond investors given their potential impact on oil prices, inflation, and Fed policy.
For credit investors, the strategic calculus remains unchanged: whilst spreads offer limited compensation for risk by historical standards, all-in yields continue to provide an attractive income proposition that has supported steady demand throughout the year.
US corporate bonds strengthened on Tuesday as Treasury yields retreated from their recent peaks, with market sentiment bolstered by renewed optimism surrounding diplomatic efforts in the Middle East. The yield on the benchmark ten-year Treasury note fell five basis points to 4.70 per cent, offering respite to credit markets that had endured weeks of upward pressure on borrowing costs.
Hopes for a deal to revive the Strait of Hormuz lifted risk assets broadly, whilst bonds rose as crude oil prices tumbled. West Texas Intermediate crude fell 5 per cent on optimism that mediators would broker a settlement, easing fears of American military action against Iran. The sharp decline in energy prices provided welcome relief for fixed income investors who had grown increasingly concerned about the inflationary implications of elevated oil costs.
The corporate credit market continues to exhibit remarkable resilience despite yields having reached their highest levels in nearly two decades. The investment grade corporate bond index effective yield stood at 5.22 per cent, a level not sustained since the mid-2000s. Credit spreads remained compressed, with the ICE BofA US Corporate Index option-adjusted spread at 77 basis points, well inside the 10-year average near 130 basis points, reflecting continued confidence in corporate fundamentals despite elevated macroeconomic uncertainty.
Investors continued to evaluate the outlook for Federal Reserve monetary policy. Markets are currently pricing in about a 65 per cent chance of a 25 basis point rate rise in September after the central bank held rates steady in July, though three policymakers dissented from that decision. The prospect of further tightening has weighed on duration-sensitive assets in recent weeks, though Tuesday’s rally suggested some of this concern had been priced into the market.
Activity in the US corporate bond market has been robust this year, with trading volumes through June averaging $69.1 billion daily, up 14.5 per cent year-over-year. The first quarter produced the largest quarterly corporate bond issuance total since the second quarter of 2020, at $775.2 billion. This surge in supply has been absorbed readily by institutional buyers, with the broad-market investment grade ETF complex absorbing capital from both retail rebalancers and institutional allocators rotating out of money-market funds.
Looking ahead, bond dealers expect the US Treasury will need to increase the sizes of at least some fixed-rate borrowing programmes next year, a development that could put further upward pressure on yields. The ten-year Treasury yield is expected to hold in the 4 to 4.5 per cent range, according to analysts, although risks remain tilted to the upside. Geopolitical risks, particularly in the Middle East, have become more salient for bond investors given their potential impact on oil prices, inflation, and Fed policy.
For credit investors, the strategic calculus remains unchanged: whilst spreads offer limited compensation for risk by historical standards, all-in yields continue to provide an attractive income proposition that has supported steady demand throughout the year.
Data sourced from FINRA TRACE via public market activity reports. For non-commercial informational use only.