US Junk Bond Yields Hit 18%, Widest Credit Spreads Since 2020

CCC-rated bond yields surged 500 basis points in six months to 18%, the highest since the 2020 pandemic, while credit spreads over Treasuries widened to 13.4%—exceeding the 2022 bear market peak. This signals deteriorating credit conditions that could tighten financial conditions and pressure risk appetite, affecting USD pairs and credit-sensitive currencies as markets reassess Fed rate-cut timing.