Corporate-bond investors have been taking profits for five out of the seven so-called Magnificent Seven components of the S&P 500
SPX,
according to pricing data.
In a sign of stronger demand for their bonds, price spreads for the Magnificent Seven have tightened this week against 10-year Treasurys
TY00,
(see chart).
Price spreads between corporate bonds of the Magnificent Seven have tightened against 10-year Treasurys in a sign of strong demand for their debt.
BondCliQ Media Services
With the exception of Apple Inc.
AAPL,
and Meta Platforms Inc.
META,
net selling has outpaced buying in corporate bonds for the Magnificent Seven.
Microsoft Corp.’s
MSFT,
corporate bonds have drawn the the heaviest selling, followed closely by Amazon.com Inc.’s
AMZN,
Alphabet Inc.
GOOG,
Tesla Inc.
TSLA,
and Nvidia Corp.
NVDA,
have also seen more sellers than buyers (see chart).
Sellers have outnumbered buyers for all but two of the corporate bonds of the Magnificent Seven as public-bond investors take profits.
BondCliQ Media Services
The stocks have been in the spotlight for much of 2023 as the biggest contributors to the 24.3% rally in the S&P 500
SPX.
The stocks have remained hot through this season’s Santa Claus rally as expectations build for the U.S. Federal Reserve to start cutting interest rates in the first part of 2024.
Also read: A record share of S&P 500 stocks have underperformed the index in 2023 as ‘weirdest bull market in decades’ marches on
