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Microsoft Bonds Trade Below Treasuries, Signaling Strong Market

9/29/2025

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Summary

Story summary

Two AAA-rated Microsoft Corporation bonds trade at yields slightly below Treasuries, indicating a negative spread and suggesting a robust corporate-bond market despite usual challenges.
Investors now lend to companies at yields below government bonds, a pattern that typically signals higher government default risk.
Microsoft Corporation holds $95 billion in cash and $40 billion in long-term debt, shaping its liquidity profile.

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Story summary

Two AAA-rated Microsoft Corporation bonds trade at yields slightly below Treasuries, indicating a negative spread and suggesting a robust corporate-bond market despite usual challenges.
Investors now lend to companies at yields below government bonds, a pattern that typically signals higher government default risk.
Microsoft Corporation holds $95 billion in cash and $40 billion in long-term debt, shaping its liquidity profile.