The Federal Reserve held its target range on Oct. 28 as U.S. Treasury yields topped 5% and the ICE BofA BBB U.S. Corporate Index recorded a 6.03% effective yield the previous day, setting the backdrop for corporate financing plans.
The Federal Open Market Committee voted 10-2 to keep the federal funds target range at 3.75% to 4%. The Fed said inflation remained elevated; two members favored a quarter-point increase.
U.S. Treasury data showed par yields of 5.05% for 10-year debt and 5.37% for 30-year debt on Oct. 28. Federal Reserve Bank of St. Louis data put the ICE BofA index yield at 6.03% at the Oct. 27 close. The index covers U.S. dollar-denominated investment-grade corporate bonds in the BBB rating category.
Some investors interviewed by CNBC described yields on highly rated corporate bonds as attractive. Steven Purdy, TCW’s group managing director and co-head of global credit, told CNBC, “You’re typically not able to buy AA [and similarly rated] companies at these attractive yields.” CNBC also reported that interviewees cited issuer credit quality and exposure to AI investment as risks; these were the investors’ assessments.
Meta reported $34.91 billion in capital expenditures, including principal payments on finance leases, for the quarter ended Sept. 30, 2026. The company forecast capital spending of $135 billion to $145 billion for 2026 and reported $84 billion in notes outstanding as of Sept. 30.
A Meta SEC filing describes concurrent public stock offerings totaling about $35 billion, including roughly $22.5 billion in Class A common stock and $12.5 billion in preferred stock. It also outlines a planned at-the-market program of about $60 billion after Class C shares begin trading. Meta has no agreement for that future program, and its size, timing and terms remain undecided. The company listed operating cash, investment-grade debt, strategic partnerships and equity as intended funding sources.
VettaFi’s review of earlier market downturns found that rising rates weighed more heavily on infrastructure debt in 2022, while equities took a larger hit during the early 2020 pandemic-era decline.
The Fed’s next scheduled policy meeting is Dec. 8-9, 2026.
