Analysis: SpaceX is still entering the bond market at a favorable time

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Golden Finance reports that on June 23, despite a slow start to the stock market this week, SpaceX (SPCX.O) remains in a favorable position to enter the bond market for corporate borrowers. Judging by recent historical standards, the benchmark 10-year U.S. Treasury yield remains high, closing at 4.507% on Monday, up from 4.450% last Thursday. However, the extra yield investors demand for high-rated corporate bonds over U.S. Treasuries (i.e., the yield spread) is hovering near multi-decade lows, indicating strong investor demand. "SpaceX is not trading based on fundamentals," said Gill Luria, head of technical research at D.A. Davidson. "The prices people are willing to pay are more influenced by their optimism, hopes, and dreams. Therefore, we will face significant volatility. The past few trading days have just been an initial experience of this volatility."
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