The traditional post-Labor Day rush to sell US high-grade debt has started slower this year, as fresh market volatility keeps some borrowers on the sidelines. Only 18 companies are raising a combined $38.6 billion from US investment-grade bonds on Tuesday, marking the fewest issuers since 2020 and the lowest issuance volume in three years for the first trading day after the holiday, according to Bloomberg-compiled data.

This slowdown reflects cautious sentiment amid ongoing market fluctuations. The reduced activity suggests that companies are waiting for more stable conditions before tapping the debt markets. Investors and analysts will be watching upcoming economic reports, including the Producer Price Index (PPI) and Consumer Price Index (CPI), for further direction.

The data highlights a shift from previous years' robust post-holiday issuance, signaling potential headwinds for the bond market. As the week progresses, market participants will assess whether this slower pace is a temporary blip or a longer-term trend.