That’s the most in a day since November 2022. But the level of spreads for the notes, at 164 bps, is similar to mid-January.
US bank bonds weakened on Thursday after SVB Financial Group sold equity to shore up its capital position, raising investor concern about how much rising rates have hit other firms’ balance sheets.
The moves were generally the sharpest in a few months, but not big enough to signify serious fear just yet. Spreads, or the extra yield that bonds pay compared with Treasuries, widened by 0.08 percentage point, or 8 basis points (bps), for Bank of America Corp.’s 5.015% bonds due July 2033.
