Investing.com -- After a period of turbulence following President Donald Trump's tariff announcement, the US high-grade corporate bond market reopened on Tuesday, according toa a report from Bloomberg. Paychex Inc (NASDAQ:PAYX). confirmed that it is selling notes in three parts, marking the first deal since the tariff-related upheaval. The move comes as a key risk gauge began to ease and markets worldwide showed signs of calming.
In addition to Paychex Inc., approximately four issuers are expected to sell investment-grade bonds on Tuesday. This marks a significant shift as there had only been high-grade issuance in two of the eight sessions prior to Tuesday, with the most recent being on April 2. During this period, these sales generated a total of $6 billion, as tariff-related chaos and significant shifts across various asset classes deterred borrowers.
The reopening of the bond market follows a period of significant credit risk and a consequential one-day loss, the largest since 2022. Average investment-grade spreads have seen their biggest increase in two years, according to a Bloomberg index. Yields also experienced a significant rise, reaching 5.32% on Monday, the highest since June 2022.
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