Bloomberg Surveillance · Friday, October 2, 2026
The bond market is dealing with a significant supply of new debt issuance, including from hyperscalers, which is contributing to higher global yields. While credit spreads have widened slightly, they remain tight compared to historical crisis levels, and the market is adjusting to a new normal of higher yields.
“And part of that has been so much new issuance into the fixed income market. We had the hyperscalers. This week was a big week. You know, Paramount and SoftBank.”
“So, again, I think when we look at global bond markets and treasury markets everywhere and some of this higher yields across the board, part of it is just the glut of supply that's hitting the market and the hyperscaler issuance has been huge.”
“Like we've seen, I think, 50 basis points-ish in high-grade spreads this week. But still, we're starting from such extremely tight levels, even same thing. You look at Italy, Germany has moved a lot in the last couple of weeks, but we're at 125. In the last two years crisis, you were at 250. You can get meaningfully wider in these spreads.”