Spreads on U.S. junk bonds jumped to 401 basis points — the highest level since November 2023 — as investors reacted to fears that President Donald Trump’s new tariff plans could trigger a global trade war.
Investment-grade bond spreads also increased, reaching 106 basis points, the highest since August 2024. The widening gaps reflect growing caution in the market as investors move away from riskier assets.
Inputs from Reuters.
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