FINRA TRACE · 26 August 2026 · Source: FINRA
Key Data — 26 August 2026
• US 10-year Treasury yield: 4.66% on August 26, 2026 (up 0.02 percentage points from prior session)
• US 30-year Treasury yield: 5.18% on August 26, 2026
• US 2-year Treasury yield: 4.23% on August 26, 2026 (up 0.04 percentage points)
• Bloomberg US Corporate Bond Index spread: 80 basis points
• August investment-grade issuance: $145.2 billion (record for the month)
• YTD 2026 corporate bond trading ADV (through July): $68.1 billion (+14.4% Y/Y)
• YTD 2026 corporate bond issuance (through July): $1,681.0 billion (+26.9% Y/Y)
• US corporate bond market outstanding (Q1 2026): $11.7 trillion (+3.0% Y/Y)
• Weekly returns: Investment grade corporates -0.15%, high yield -0.15%, emerging markets -0.25%
• US tariffs on Canadian goods: 50% on $27.6 billion effective August 22, 2026
• US 30-year Treasury yield: 5.18% on August 26, 2026
• US 2-year Treasury yield: 4.23% on August 26, 2026 (up 0.04 percentage points)
• Bloomberg US Corporate Bond Index spread: 80 basis points
• August investment-grade issuance: $145.2 billion (record for the month)
• YTD 2026 corporate bond trading ADV (through July): $68.1 billion (+14.4% Y/Y)
• YTD 2026 corporate bond issuance (through July): $1,681.0 billion (+26.9% Y/Y)
• US corporate bond market outstanding (Q1 2026): $11.7 trillion (+3.0% Y/Y)
• Weekly returns: Investment grade corporates -0.15%, high yield -0.15%, emerging markets -0.25%
• US tariffs on Canadian goods: 50% on $27.6 billion effective August 22, 2026
The American corporate bond market navigated rising Treasury yields and escalating trade tensions with Canada on Wednesday, as investors weighed record new issuance against mounting geopolitical uncertainty. The yield on the benchmark 10-year Treasury note rose to 4.66 per cent, edging higher by two basis points from the prior session, while markets continued to evaluate US-Canadian tariff developments ahead of key inflation data.
The collapse of US-Canada trade negotiations at the weekend cast a pall over proceedings, with new 50 per cent Trump administration tariffs on Canadian exports taking effect after the two nations failed to reach a deal. The US has now imposed duties on $20 billion worth of Canadian products, prompting Prime Minister Mark Carney to announce retaliatory measures “dollar for dollar” commencing September 8. The dispute introduces fresh uncertainty into an already complex macroeconomic environment, though credit spreads remained remarkably contained.
Investment-grade spreads held steady at approximately 80 basis points over Treasuries, a level that continues to perplex observers given the array of risks confronting markets. The US investment-grade corporate bond market entered the second quarter of 2026 with option-adjusted spreads at 77 basis points, a level not sustained since the pre-financial crisis era. Charles Schwab analysts noted they are “maintaining an up-in-quality theme given low credit spreads,” whilst acknowledging that investment-grade yields remain near the upper end of their 15-year range.
US investment-grade bond sales have set a third straight monthly record, with the market’s fastest pace of issuance driven by spending on the artificial-intelligence buildout fuelling corporate borrowing. August’s high-grade debt supply reached $145.2 billion, surpassing the 2020 record of $136 billion for the month, whilst January, June and July had each posted their strongest totals on record. The deluge of supply has tested the market’s absorptive capacity, yet demand has proved remarkably resilient.
Treasury yields rose sharply during the week, reversing the previous day’s decline following Treasury Secretary Scott Bessent’s announcement of larger buybacks of long-dated government debt. The reversal suggests investors remain sceptical that the Treasury’s expanded buyback programme will provide lasting relief for elevated borrowing costs.
The Federal Reserve’s policy stance remains firmly data-dependent. The central bank is expected to remain on hold through year-end, with strategists forecasting the 10-year Treasury yield to finish 2026 between 4.25 and 4.50 per cent. Investors awaited the latest US PCE price index report, the Fed’s preferred inflation measure, ahead of Chair Kevin Warsh’s appearance at the annual Jackson Hole symposium, where he was not expected to provide clear guidance on the September policy decision.
S&P Global Ratings has identified technology sector issuance fuelled by artificial intelligence and private credit expansion as key factors impacting credit market liquidity in 2026, whilst warning that limited transparency at highly leveraged non-bank financial institutions represents a significant source of financial fragility. The interplay between these structural forces and cyclical headwinds from trade policy shall prove determinative for credit markets in the months ahead.
The collapse of US-Canada trade negotiations at the weekend cast a pall over proceedings, with new 50 per cent Trump administration tariffs on Canadian exports taking effect after the two nations failed to reach a deal. The US has now imposed duties on $20 billion worth of Canadian products, prompting Prime Minister Mark Carney to announce retaliatory measures “dollar for dollar” commencing September 8. The dispute introduces fresh uncertainty into an already complex macroeconomic environment, though credit spreads remained remarkably contained.
Investment-grade spreads held steady at approximately 80 basis points over Treasuries, a level that continues to perplex observers given the array of risks confronting markets. The US investment-grade corporate bond market entered the second quarter of 2026 with option-adjusted spreads at 77 basis points, a level not sustained since the pre-financial crisis era. Charles Schwab analysts noted they are “maintaining an up-in-quality theme given low credit spreads,” whilst acknowledging that investment-grade yields remain near the upper end of their 15-year range.
US investment-grade bond sales have set a third straight monthly record, with the market’s fastest pace of issuance driven by spending on the artificial-intelligence buildout fuelling corporate borrowing. August’s high-grade debt supply reached $145.2 billion, surpassing the 2020 record of $136 billion for the month, whilst January, June and July had each posted their strongest totals on record. The deluge of supply has tested the market’s absorptive capacity, yet demand has proved remarkably resilient.
Treasury yields rose sharply during the week, reversing the previous day’s decline following Treasury Secretary Scott Bessent’s announcement of larger buybacks of long-dated government debt. The reversal suggests investors remain sceptical that the Treasury’s expanded buyback programme will provide lasting relief for elevated borrowing costs.
The Federal Reserve’s policy stance remains firmly data-dependent. The central bank is expected to remain on hold through year-end, with strategists forecasting the 10-year Treasury yield to finish 2026 between 4.25 and 4.50 per cent. Investors awaited the latest US PCE price index report, the Fed’s preferred inflation measure, ahead of Chair Kevin Warsh’s appearance at the annual Jackson Hole symposium, where he was not expected to provide clear guidance on the September policy decision.
S&P Global Ratings has identified technology sector issuance fuelled by artificial intelligence and private credit expansion as key factors impacting credit market liquidity in 2026, whilst warning that limited transparency at highly leveraged non-bank financial institutions represents a significant source of financial fragility. The interplay between these structural forces and cyclical headwinds from trade policy shall prove determinative for credit markets in the months ahead.
Data sourced from FINRA TRACE via public market activity reports. For non-commercial informational use only.