U.S. corporate bond market issuance is expected to decline next week due to conflicting economic statistics.

High-grade bond issuance in the first week of 2024 totaled around $59 billion, above estimates of $50 billion to $55 billion.

Best-rated corporations led the rush, hoping to benefit from reduced borrowing costs due to tightening credit spreads, premium over Treasuries, and a fall in Treasury yields by the end of 2023.

However, mixed signals from economic data releases and yield volatility could restrict bond issuance.

Bond syndicate desks anticipate issuance of $35 billion on average the following week.