Debt Instrument Issuances Set to Hit Record Levels
Global debt capital markets activity reached approximately $7.1 trillion in the first half of this year, marking a 7 percent year-on-year growth and representing the strongest half-year performance since data recording began in 1980, according to data released by the London Stock Exchange Group.
According to a report by KAMCO Invest, this growth occurred despite a 12 percent decline in the number of new issuances offered in the markets, which fell to a three-year low of approximately 17,000 issues. This indicates that while the period was characterized by fewer transactions, their total value was significantly higher.
In detail, on a quarterly basis, issuances declined by 6 percent in the second quarter of this year compared to the record levels seen in the first quarter. Regarding the credit ratings of issuing entities, investment-grade corporate debt issuances, alongside high-yield issuances, recorded double-digit growth during the first half of the year.
This period marked the strongest first six months ever for the global high-grade corporate debt market, with two consecutive quarters recording issuance values exceeding $1.5 trillion.
By sector, technology companies led the way. Issuances in the retail and technology sectors more than doubled on a year-on-year basis.
Conversely, corporate debt issuances in emerging markets contracted by 7 percent year-on-year to $245.3 billion, with India, Saudi Arabia, Malaysia, and Brazil accounting for 51 percent of total emerging market activity.
US sovereign bond yields remained highly volatile during the first half of this year. Traded within a narrow range mostly between 4.0 and 4.5 percent since early March, under the Federal Reserve’s cautious, wait-and-see approach. However, yields recorded a sharp increase during the first week of July, with the 10-year Treasury yield rising over four consecutive sessions to reach 4.69 percent by July 23, the highest level since January 2025.
This occurred amid escalating geopolitical tensions between the United States and Iran, which drove oil prices sharply higher, surpassing the $100 per barrel mark and reigniting inflation concerns. Yields subsequently declined marginally as tensions eased, closing the trading session on July 27, 2026, at 4.64 percent for the 10-year bond.
This recent trend in yields reflected a noticeable shift in the Federal Reserve’s rhetoric, after several officials indicated that the risk balance had shifted toward rising inflation, moving away from concerns about a weak labor market.
The latest minutes from the Federal Open Market Committee meeting held in June 2026 showed a division among committee members regarding inflation prospects. Nine out of 18 officials indicated in their forecasts that they expected to raise interest rates at least once during the current year, as core inflation, according to the Personal Consumption Expenditures index, approached 3.3 percent, and the pass-through effect of tariffs on prices continued to keep inflationary pressures at elevated levels.
