U.S. High-Yield Bond Yield Rises to 8.03%, Highest Since April 2025, After 104 Basis Point Surge in 5 Weeks

The U.S. corporate high-yield bond market is under serious pressure.
The effective yield on U.S. high-yield corporate bonds has risen to 8.03%, its highest since April 2025.
This figure has surged 104 basis points over the last five weeks, marking its largest five-week increase in 17 months.
As a result, high-yield corporate bond spreads have widened to 3.02%, their highest since early April. This represents the extra yield investors demand, on average, to hold corporate junk bonds over Treasuries.
Meanwhile, average spreads for CCC-rated corporate bonds, the lowest-quality tier, have soared 400 basis points since January to 968 basis points, their highest since November 2023.
U.S. credit market stress is intensifying.