Weekly bond digest: March 16–22, 2026

Yield Curves

Developed market yield curves moved higher and flattened during the week, as investors priced in more persistent inflation risk from renewed energy price pressure and geopolitical uncertainty. Rising gas prices and fading expectations of a quick resolution in the Middle East conflict pushed short-dated rates up more than long-dated yields, producing a broad bear-flattening across major markets. In this environment, it makes sense to stay in shorter-duration bonds, as they are generally less exposed to further rate volatility while uncertainty remains high. If the geopolitical situation improves and the conflict moves toward resolution, longer-dated bonds could become more attractive, as elevated yields may offer a better entry point for investors looking to lock in income for longer.

Top movers

Credit markets were choppy this week as investors reacted to uncertainty around interest rates and energy prices. Fears that central banks may stay tougher for longer put pressure on bond prices, especially in longer-dated bonds, which are usually more sensitive to changes in yields. If oil prices stay high and the Fed turns more hawkish, this could create further pressure on credit markets.

At the same time, higher yields kept attracting investors into investment-grade bonds. This demand helped limit the downside, even though returns stayed weak and market swings remained high.

Top gainers

Below are the bonds with the strongest weekly price appreciation.

Top losers

The following bonds experienced the sharpest weekly declines.

New issues

New bond issuance slowed sharply last week after a very heavy week before. In the US investment-grade market, supply fell to about $34bn, around 70% lower than the previous week. That lower supply helped the market absorb new deals more easily and reduced some pressure on spreads. At the same time, investors remained selective, with demand holding up better for higher-quality bonds while riskier financing faced a tougher reception.