The close of 2023 coincided with a long-awaited shift in monetary policy rhetoric. Given the IG sector’s longer duration, the steady march higher in Treasury yields penalized investors in 2022. Despite the yield on the 10-year finishing 2023 flat year-overyear (YoY) at 3.88%, there was significant interest-rate volatilityalong the way, with a peak yield of nearly 5% in October. We anticipate continued rate volatility in 2024 but overall expect the yield curve to steepen, which should be supportive of IG corporates.
