By Shankar Ramakrishnan and Matt Tracy

(Reuters) – U.S. corporate debt markets continued to be peppered by latest bond offerings on Wednesday as rising Treasury yields increased demand for debt and pushed corporations to get their funding done now before any further increase in borrowing costs.

The primary seven days of the 12 months has seen some $75 billion of investment-grade rated bond supply – the busiest through the primary full week of a latest 12 months in history, said BMO Capital in a report.

The tally is predicted to grow with three more corporate and a few eight sovereign and supranational bond offerings set to cost on Wednesday, in accordance with Informa Global Markets data.

“There’s a rush amongst corporations to get their funding done now to avoid increasing borrowing costs with Treasury yields rising consistently over the past week,” said Clayton Triick, head of portfolio management at Angel Oak Capital Advisors.

Investment-grade rated bonds price at an expansion premium over risk-free U.S. Treasuries.

There are concerns that a sell-off in Treasuries and rise within the dollar that’s sending shockwaves through financial markets could persist as uncertainty grows over U.S. President-elect Donald Trump’s policies and its influence on an U.S. rate of interest easing cycle.

Investor demand at higher yields nonetheless has been robust pressuring corporate credit spreads and ultimately neutralizing the impact on funding costs as a result of higher yields.

Typically, issuance volumes were expected to wane after a rush of supply which might push spreads wider but this time around with higher yields prompting more demand, spreads are expected to tighten back in, said Hans Mikkelsen, credit strategist at TD Securities.

So rising yields and tightening spreads are expected to assist each issuers and investors, and keep alive the present issuance frenzy which is predicted to resume after a temporary lull.

An abbreviated session on Thursday in tribute to the late thirty ninth U.S. President Jimmy Carter and release of jobs data on Friday are expected to slow issuance.

Also, U.S. corporations refrain from issuing bonds before releasing earnings which might be expected to begin trickling in later this week.

Bankers expect anywhere between $175 billion to $200 billion to be raised from latest bond offerings in January. If volumes reached $200 billion, it could mark only the fifth time in history that monthly issuance topped that number, in accordance with Informa Global Markets data.

(Reporting by Shankar Ramakrishnan and Matt Tracy; Editing by Nick Zieminski)