US corporate bonds post first positive monthly return this year

NEW YORK, June 2 (Reuters): US corporate bonds posted their first positive monthly return this year in May as easing inflation jitters alleviated pressure on rates and the possibility of a less hawkish Federal Reserve mitigated concerns over companies' ability to repay their debt.

Total returns as measured by the ICE BofA US corporate index, which tracks dollar-denominated investment-grade corporate debt, were 0.55 per cent in May, Refinitiv data showed - the first positive number since November.

Total returns for the ICE BofA US High Yield Index, a commonly used benchmark for the junk bond market, were 0.27 per cent, the first positive monthly return since December.

Total returns include interest payments and price changes.