Bloomberg Surveillance · Wednesday, July 29, 2026
The bond market is increasingly demanding a higher risk premium, with wider and steeper credit spreads. This shift is driven by significant supply coming from both fiscal stimulus and corporate issuance, particularly at the long end of the curve.
“Well, coming back to the point that there's going to be a lot more where this paper comes from. So one shift you've actually seen is that the risk premium that the bond market commands is going up over time. Right, So the spreads are not only wider, but the spread curve is steeper.”
“And then you know, we've got a lot of supply coming at the long end of the curve, a from fiscal so governments are issuing more. But you see it in the in the ITG market as well. You see the corporate market issue and more, particularly higher scalers at the long end, So that puts pressure.”