The Fed has also hesitated on pulling the trigger due to the ongoing volatility, notably in overseas markets.
Moreover, even if the Fed makes a move, bond traders are skeptical that rates will rise as quickly as policy makers hope – Fed officials have a median projection for borrowing costs to rise 1.4% next year and 3.5% over the long-term while futures suggest traders anticipate a 0.72% rise by the end of 2016 and 1.56% over the next three years.
iShares iBoxx $ High Yield Corporate Bond ETF
For more information on the speculative-grade bond market, visit our junk bonds category.
Max Chen contributed to this article.