Bonds

Wall Street bankers and investors are preparing for a sharp drop in corporate bond sales next year.

Tsinghua Unigroup, a key player in China’s push for self-reliance in semiconductors, is in default on nearly $2.5 billion of international bonds, in the latest instance of financial stress in China spilling over into global markets.

U.S. government-bond yields fell Tuesday, driven lower by investors’ concerns about the prospects for Brexit trade negotiations and a U.S. emergency economic relief package.

The development highlights how demand for fixed-income assets is reducing their potential returns.

Sharp moves in Treasury bonds whipsawed investors recently, but the volatility has made a winner out of Tradeweb, a large electronic marketplace for U.S. government debt.

Some investors believe the central bank could start buying more long-term U.S. Treasurys as soon as its next policy meeting, a trend that has helped temper some recent selling and kept yields from rising higher.

The yield on the 10-year Treasury note climbed to a three-week high, following a renewed congressional effort to send aid to businesses and municipalities hurt by the pandemic.

An investigation into the troubled Chinese state-owned Yongcheng Coal & Electricity Holding Group was escalated to the country’s securities regulator.

A body that groups together China’s central bank and other top financial regulators and that is chaired by Vice Premier Liu He issued the warning after a series of defaults by state-backed groups unsettled investors.

China Construction Bank decided not to proceed with a sale of up to $3 billion in short-term debt in an offshore financial center in Malaysia.

Superlow interest rates in Europe helped China to sell its first negative-yielding debt, as it raised about $4.7 billion in a three-part deal in euros.

The financial position of the world’s largest oil producer has darkened as it contends with a fall in crude prices caused by the coronavirus pandemic.

Investors are pointing to one key factor lurking beneath a recent rally in U.S. speculative-grade bonds: falling real yields, which are driving those in search of higher returns to the high-yield market.

Tsinghua Unigroup, a key player in China’s push for self-reliance in semiconductors, has defaulted on a bond, adding to a recent spate of trouble in the country’s corporate debt markets.

U.S. Treasury yields jumped Monday after positive news about the potential efficacy of a Moderna Inc. Covid-19 vaccine sparked a risk-on shift in market sentiment.

Investors are losing confidence in the local governments that stand behind many of China’s corporate debt issuers.

Saudi Aramco said it aims to issue a U.S. dollar-denominated bond, as the cash-strapped oil giant cuts jobs, considers asset sales and reviews its expansion plans.

The U.S. election and good early results for a Covid-19 vaccine have given a double-boost to junk-rated companies such as American Airlines, Macy’s and Occidental Petroleum.

The yield on the 10-year Treasury note rose to 0.821% after new data showed Democratic candidate Joe Biden pulling ahead in Pennsylvania.