FINRA TRACE · 22 August 2026 · Source: FINRA
Key Data — 22 August 2026
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– YTD 2026 corporate bond trading: $68.1 billion average daily volume (through July), +14.4% year-over-year
– YTD 2026 issuance: $1,681.0 billion (through July), +26.9% year-over-year
– Outstanding corporate bonds: $11.7 trillion (as of Q1 2026), +3.0% year-over-year
– August high-grade debt supply reached $145.2 billion, setting a new monthly record
– Weekly investment grade issuance: $56 billion from 37 issuers, one of the busiest weeks this year
– Investment grade corporate spreads: 79 basis points over Treasuries
– High yield OAS: ~281 basis points; Investment grade OAS: ~81 basis points
– 10-year Treasury yield: 4.74% (August 21, 2026)
– 30-year Treasury yield: 5.28% (August 21, 2026)
– Weekly returns: Investment grade corporates -0.29%; High yield +0.14%
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– YTD 2026 corporate bond trading: $68.1 billion average daily volume (through July), +14.4% year-over-year
– YTD 2026 issuance: $1,681.0 billion (through July), +26.9% year-over-year
– Outstanding corporate bonds: $11.7 trillion (as of Q1 2026), +3.0% year-over-year
– August high-grade debt supply reached $145.2 billion, setting a new monthly record
– Weekly investment grade issuance: $56 billion from 37 issuers, one of the busiest weeks this year
– Investment grade corporate spreads: 79 basis points over Treasuries
– High yield OAS: ~281 basis points; Investment grade OAS: ~81 basis points
– 10-year Treasury yield: 4.74% (August 21, 2026)
– 30-year Treasury yield: 5.28% (August 21, 2026)
– Weekly returns: Investment grade corporates -0.29%; High yield +0.14%
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The US corporate bond market concluded a turbulent week as Treasury yields reversed the relief rally sparked by the government’s expanded buyback programme, leaving credit investors to navigate heightened volatility amid record-breaking issuance.
The yield on the 10-year US Treasury note rose to 4.74 per cent on Friday, testing the 20-month highs reached earlier in the week and more than erasing the decline triggered by the Treasury Department’s announcement of a larger bond buyback. Treasury yields rose sharply on Thursday, reversing the previous day’s decline following Treasury Secretary Scott Bessent’s announcement of larger buybacks of long-dated government debt. The 30-year yield climbed seven basis points to 5.26 per cent, returning to levels seen before the announcement.
The reversal suggests investors remain sceptical that the Treasury’s expanded buyback programme will provide lasting relief for elevated borrowing costs. Yields on the longer end of the curve had surged since July amid soaring debt issuance from AI companies and higher deficit spending by the federal government.
The corporate bond market has demonstrated remarkable resilience in absorbing unprecedented supply. US investment-grade bond sales have set a third straight monthly record, continuing the market’s fastest pace of issuance as spending on the artificial-intelligence buildout fuels corporate borrowing. August’s high-grade debt supply reached $145.2 billion, topping 2020’s total of $136 billion for the month.
Investment grade primary markets absorbed a massive $56 billion week without meaningful spread disruption, underscoring resilient investor demand. Credit spreads held firm despite the Treasury volatility, with the high yield index OAS of 281 basis points sitting in the richest decile of its history against a long-run median near 450 basis points, whilst investment grade traded at 81 basis points.
Adding to the pressure on government bond yields is a deluge of competing corporate bonds from tech companies racing to finance the artificial intelligence buildout. Hyperscalers like Google and Meta are issuing tens of millions in debt, vying for the same pool of bond buyers. With more bonds to choose from, many investors are shifting their money into corporate debt.
Bond investors are wary of $70 billion of off-balance-sheet AI liabilities as Nvidia, Broadcom and Meta backstop AI debt. Rating agencies warn these guarantees could become costly in a downturn.
The Federal Reserve’s path remains uncertain. Fed officials offered a range of views this week, from hawkish calls for near-term action to more balanced assessments that much of current inflation stems from shocks that should fade. Concerns over large fiscal deficits, persistent inflation and heavy borrowing needs continue to weigh on longer-dated bonds, whilst higher oil prices are adding to inflation risks.
Credit fundamentals for both public and private credit remain supported by the resilient US economy, strong balance sheets, manageable debt maturities, and lower interest rates. While credit spreads are near the tight end of historical averages, they reflect sound fundamentals. Nevertheless, the combination of record issuance, elevated Treasury volatility and geopolitical uncertainty suggests credit markets face a challenging autumn.
The US corporate bond market concluded a turbulent week as Treasury yields reversed the relief rally sparked by the government’s expanded buyback programme, leaving credit investors to navigate heightened volatility amid record-breaking issuance.
The yield on the 10-year US Treasury note rose to 4.74 per cent on Friday, testing the 20-month highs reached earlier in the week and more than erasing the decline triggered by the Treasury Department’s announcement of a larger bond buyback. Treasury yields rose sharply on Thursday, reversing the previous day’s decline following Treasury Secretary Scott Bessent’s announcement of larger buybacks of long-dated government debt. The 30-year yield climbed seven basis points to 5.26 per cent, returning to levels seen before the announcement.
The reversal suggests investors remain sceptical that the Treasury’s expanded buyback programme will provide lasting relief for elevated borrowing costs. Yields on the longer end of the curve had surged since July amid soaring debt issuance from AI companies and higher deficit spending by the federal government.
The corporate bond market has demonstrated remarkable resilience in absorbing unprecedented supply. US investment-grade bond sales have set a third straight monthly record, continuing the market’s fastest pace of issuance as spending on the artificial-intelligence buildout fuels corporate borrowing. August’s high-grade debt supply reached $145.2 billion, topping 2020’s total of $136 billion for the month.
Investment grade primary markets absorbed a massive $56 billion week without meaningful spread disruption, underscoring resilient investor demand. Credit spreads held firm despite the Treasury volatility, with the high yield index OAS of 281 basis points sitting in the richest decile of its history against a long-run median near 450 basis points, whilst investment grade traded at 81 basis points.
Adding to the pressure on government bond yields is a deluge of competing corporate bonds from tech companies racing to finance the artificial intelligence buildout. Hyperscalers like Google and Meta are issuing tens of millions in debt, vying for the same pool of bond buyers. With more bonds to choose from, many investors are shifting their money into corporate debt.
Bond investors are wary of $70 billion of off-balance-sheet AI liabilities as Nvidia, Broadcom and Meta backstop AI debt. Rating agencies warn these guarantees could become costly in a downturn.
The Federal Reserve’s path remains uncertain. Fed officials offered a range of views this week, from hawkish calls for near-term action to more balanced assessments that much of current inflation stems from shocks that should fade. Concerns over large fiscal deficits, persistent inflation and heavy borrowing needs continue to weigh on longer-dated bonds, whilst higher oil prices are adding to inflation risks.
Credit fundamentals for both public and private credit remain supported by the resilient US economy, strong balance sheets, manageable debt maturities, and lower interest rates. While credit spreads are near the tight end of historical averages, they reflect sound fundamentals. Nevertheless, the combination of record issuance, elevated Treasury volatility and geopolitical uncertainty suggests credit markets face a challenging autumn.
Data sourced from FINRA TRACE via public market activity reports. For non-commercial informational use only.