Treasury sell-off piles pressure on weakest US borrowers
Spreads on riskiest junk debt have climbed to their highest level since the market meltdown that followed last year’s ‘liberation day’ tariff blitz
TL;DR
- A Treasury sell-off is increasing pressure on the weakest US borrowers.
- Spreads on the riskiest junk debt have reached their highest level in over a year.
- This situation is reminiscent of the market meltdown that occurred after last year's 'liberation day' tariff blitz.