Money-Drenched Credit Markets Withstand Even a US Inflation Miss

The wave of money making its way into the credit market is acting as a shield for investors against every negative scenario – even the prospect of ever-fewer central bank cuts this year.

Risk premiums on high-grade and junk bonds fell Tuesday despite hotter-than-expected US consumer-price rises that pushed prospects for the Federal Reserve’s first rate cut firmly into the summer. A gauge of default insurance only rose to levels recorded on Monday.

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