Reported 7 months ago
Foreign investors have been actively investing in high-grade US corporate bonds, with a 61% increase in investment compared to last year. The macroeconomic outlook for the American economy is improving, leading overseas investors to pour $187 billion into US company notes during the first quarter of 2024. Demand from Asian and European investors has been a key support for the US dollar corporate bonds market this year, absorbing the increased supply. At a time when US 10-year Treasury yields are falling, keeping borrowing costs elevated and maintaining interest from yield-seeking investors, any surprise moves from the Federal Reserve could impact foreign demand negatively.
Source: YAHOO