JPMorgan is bullish on the performance of U.S. investment-grade bonds in the fourth quarter, with high yields and slowing supply expected to drive credit spread narrowing.

Zhitong Finance APP has learned that JPMorgan strategists expect U.S. investment-grade corporate bonds to outperform U.S. Treasuries in the fourth quarter. The bank believes that as large technology companies slow the pace of debt issuance, corporate earnings remain strong, and interest rate volatility stabilizes, the supply-demand environment for investment-grade corporate bonds is expected to improve, and credit spreads may narrow further.