Sovereign Bond Yields Soar, Corporate Bonds Follow Suit

The rising yields on U.S. and eurozone sovereign bonds have led to an increase in corporate bond yields, according to Deutsche Bank Research credit strategists.

In a note, they stated that over the past six months, the average U.S. dollar corporate bond yield has risen by 76 basis points, while the average euro-denominated corporate bond yield has increased by 64 basis points during the same period.

The strategists attributed the rise in sovereign bond yields to concerns about inflation risks stemming from high energy prices due to conflict in the Middle East.