Credit investors enticed by high yields are buying up corporate bonds, shrugging off the lingering Middle East conflict and focusing instead on robust results from blue-chip businesses.

Risk premiums on US investment-grade bonds on Thursday fell to their lowest level since early February. High-grade bond funds in late April and early May saw the most inflows since September 2020. And one borrower this week, Gilead Sciences Inc., sold longer-dated debt at a yield below that of its existing debt, signaling an unusually high level of demand.