The fewest companies in 15 months sold junk bonds in June as yields hover near their 2010 highs. Companies are waiting to tap the corporate bond market amid signs that the US economy hasn't been hurt by Europe's sovereign debt crisis, said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. Relative yields on company debt have fallen from their 2009 peak, signaling credit markets aren't closed, he said. Junk-bond yields fell 8 basis points to 9.32 percent yesterday, Bank of America Merrill Lynch Index data show. They reached a high this year of 9.49 percent on Feb. 12 before falling in April to 8.23 percent, the lowest since July 2007, the index data show. SABIC capital, a unit of Saudi Basic Industries Corp., delayed a bond sale because of unfavorable spreads, Chief Financial Officer Mutlaq Al-Morished said. The bond offer received more than $1 billion in investor interest, he said on May 26.
