Bond Sales to Dwindle as U.S. Summer Lull Begins
- High-grade supply expected to total $15 billion to $20 billion
- Companies may sell long-dated debt with yield curve flattening
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New high-grade bond sales are expected to slow next week as the U.S. summer lull starts to kick in, with syndicate desks calling for just $15 billion to $20 billion of fresh supply.
Eyes will be on Treasury yields following a turbocharged flattening of the curve this week as traders brought forward expectations for when the Federal Reserve will start raising rates. Increasing confidence that Fed tightening will help check inflation weighed on the long-end Friday, sending the 30-year yield to a level not seen since February.