Investment-grade bond yields fell slightly for the week ending May 27 after Fed Chair Janet Yellen stated that a rate hike would be appropriate in the coming months.
Investment-grade bond yields jumped in the week ending May 20 as the FOMC (Federal Open Market Committee) minutes indicated that the Federal Reserve may go ahead with a rate hike in June.
Investment-grade bond yields fell in the week ending April 29 as soft economic data raised concerns that the economy may not be ready to withstand a rate hike.
According to the December FOMC minutes, although most participants expect inflation to be in the range of 1.7%–1.8% in 2016, the overall projections range from 1.2% to 2.1%.
The Fed has a specified numerical mandate for PCE inflation given to it by Congress. The central bank is expected to maintain PCE inflation at 2% in the long run.
EDF SA is based in France. It produces, markets, and distributes electricity. EDF SA issued A1/A rated high-grade bonds worth ~$4.8 billion in five parts.
Last week, Treasury yields rose in double-digits nearly across the yield curve. Yields on investment-grade corporate bonds also rose for the week ended October 9.
When the Federal Reserve refers to inflation, it is talking about the rate of change in PCE inflation (or the price index for personal consumption expenditures).
UBS Group Funding (Jersey) Limited (UBS), via its subsidiaries, issued BBB+-rated high-grade bonds worth $4.3 billion in three parts during the week ending September 25.
US corporates were the biggest issuers of high-grade bonds last week, making up 54.2% of all issues. The Walt Disney Company (DIS) issued A2/A rated high-grade bonds worth $2.0 billion.
