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Treasury Sell-Off Increases Pressure on Vulnerable US Borrowers

5 Eylül 2026Financial Times

Spreads on the riskiest junk debt in the U.S. have reached their highest levels since the market turmoil triggered by last year's tariff increases.
This sell-off in Treasury bonds is putting significant pressure on the weakest borrowers, raising concerns about their ability to refinance and meet financial obligations. Investors are becoming increasingly cautious, reflecting a broader apprehension about credit risk in the current economic climate.
The rise in spreads follows a period of significant market volatility, particularly after the 'liberation day' tariff measures last year, which had a profound impact on investor sentiment. The current sell-off in Treasuries is seen as a reaction to broader economic uncertainties, including inflation concerns and pot…
The current situation highlights a critical juncture for U.S. borrowers, particularly those in the junk debt category.

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