Rare bond signal re-emerged in August 2025, not seen since 1998; LQD breaking resistance. US investment-grade corporate bonds vs. Treasury yields spread at 75 basis points, lowest since 2008. Market shows extreme confidence in corporate debt repayment ability. Wall Street shows love for corporate debt, no extra premium needed. Barometer for financial conditions, borrowing becomes cheaper, no risk premium demanded from companies.
In August 2025, a rare bond market signal emerged, indicating a bullish trend not seen since 1998. The LQD is breaking resistance levels, with the spread between U.S. investment-grade corporate bonds and Treasury yields at 75 basis points, the lowest since 2008. This reflects strong investor confidence in corporate debt repayment, leading to cheaper borrowing costs for companies and minimal risk premiums. Wall Street's enthusiasm for corporate debt suggests a robust market appetite despite high interest rates.
Unusual Whales·
