Rate Cut Expectations Increase Investor Demand, Bond Issuance in September

American companies issued $56.4 billion in investment grade bonds and $9.6 billion in junk bonds last week. This was the biggest weekly sales volume since March 2025, driven in large part by investors looking to purchase bonds at higher yields prior to an expected Federal Reserve rate cut later this month. The increased investor demand has also helped lower the risk premium on corporate bonds over treasuries. 

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