According to a recent report by Reuters, the spread of U.S. high yield corporate bonds widened to 401 basis points by late Thursday, marking its highest level since November 2023. The increase was influenced by concerns in global markets surrounding U.S. President Donald Trump's proposal of import tariffs potentially triggering a trade conflict.

The ICE BofA High Yield Index's adjusted spread, which indicates the difference in yields between low-grade bonds and Treasury securities, had climbed from 342 basis points on the previous day. Concurrently, spreads on investment grade bonds also saw a rise to 106 basis points, reaching their highest point since August 2024, up from 96 basis points.

The article was reported by Alden Bentley and edited by Sharon Singleton.