CAM Investment Grade Weekly Insights
Credit spreads were slightly tighter this week while Treasury yields were mostly unchanged. The OAS on the Corporate Index closed at 81 on Thursday October 8th after closing the week prior at 82. The 10yr Treasury ended last week at 5.27% and it closed at 5.23% on Thursday evening. Through Thursday, the Corporate Bond Index year-to-date total return was -2.60% and the yield to maturity for the index was 5.97%.
Bond Market Weekly
Investment grade supply finished the week at $11bln relative to dealer estimates of $25-$30bln. Interest rate volatility kept potential issuers on the sidelines in a cautious frame of mind. Syndicate desks are looking for $30bln of supply during the holiday-shortened week ahead; led by financials, as bank earnings season kicks off on Tuesday. YTD issuance now stands at $1.688 trillion.
It was a fairly light week of economic data with no market-moving releases. Interest rates were volatile again but were more subdued than the previous two weeks. The average 30-year fixed-rate mortgage rose to 7.4 percent, its highest level in three years which presents further headwinds for an already beleaguered housing market.[i] The credit markets continued to function at a high level and the spreads of most companies were tighter during the week.
Next week has much more data to parse, with CPI, retail sales, continuing claims and PPI among other releases.
Flows
According to LSEG Lipper, for the week ended October 7th, short and intermediate investment-grade bond funds reported a net inflow of +4.96bln. 2026 year-to-date net flows are +$106.3bln.
This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.
[i] The New York Times, October 8th 2026, “Highest Mortgage Rates in 3 Years Chill the Housing Market”