JPMorgan Predicts Rally in US High-Grade Corporate Bonds
JPMorgan Chase & Co. strategists anticipate a strong performance for US investment-grade corporate bonds in the final quarter of 2026. They predict these bonds will outshine Treasuries, driven by factors like slowing sales in big tech and robust corporate earnings. The bank’s projection is based on expectations that spreads on its JULI index, which tracks investment-grade corporate bonds, will tighten to 0.85 percentage points by the end of the quarter, down from 0.96 percentage points on Friday.
This forecast translates to a 0.73 percentage point prediction for the Bloomberg US corporate index, compared to a 0.82 percentage point close on Friday. The strategists’ outlook reflects optimism about the credit market’s resilience amid shifting economic conditions. No dissenting views were mentioned in the note.