Bond sales worldwide are reviving from the slowest month of the year as yields on corporate debt decline to the least since 2010.
GlaxoSmithKline Plc’s $5 billion offering, its first dollar-denominated sale in more than four years, led issuance of at least $55.1 billion this week following $45.8 billion in the period ended April 27, according to data compiled by Bloomberg. Stockholm-based Ericsson AB, the biggest maker of mobile phone networks, sold $1 billion of 10-year bonds to refinance existing debt, its first issue in almost three years.
The U.S. two-year interest-rate swap spread, a measure of bond market stress, rose for a third day, climbing 0.9 basis points to 29.25 basis points as of 12:03 p.m. in New York. The gauge widens when investors seek the perceived safety of government securities and narrows when they favor assets such as corporate bonds.
Investors added $4.85 billion to fixed-income mutual funds globally in the week-long period ended April 25, the highest level since the period ended March 14 and more than double the 2012 low of $2 billion posted April 11, according to EPFR data.