LONDON: Euro corporate bonds were set on Friday for their biggest weekly total loss since the height of the market turmoil triggered by the COVID-19 pandemic in March 2020, while spreads on US junk bonds were at their highest since November 2020.
A very volatile week that has seen global interest-rate expectations repriced higher given high inflation, followed by several central bank meetings, has triggered huge surges in yields across bond markets.
High-yield bonds saw the largest outflows since March 2020, BofA’s weekly flow show report showed on Thursday.
ICE BofA’s euro corporate index, which tracks investment-grade corporate bonds, was down 2.2% in total return terms so far this week, the largest weekly fall since March 2020.
ICE BofA’s euro high yield index was down 2.9%, also the biggest weekly fall since then.
In the US, the ICE BofA US high yield index was down 3.2% this week in total return terms, also the largest weekly fall since March 2020 there.
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