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 mid-August 2025, a rare bond market signal reappeared for the first time since 1998, signaling a potential bullish market. The LQD is surpassing resistance levels, indicating positive movement. The spread between U.S. investment-grade corporate bonds and Treasury yields has decreased to just 75 basis points, the lowest since June 2008. This suggests that investors are requiring very little extra compensation to invest in corporate debt over secure U.S. Treasuries. This reflects a high level of confidence in corporate America's repayment capabilities, with companies capitalizing on this situation. This low investment-grade credit spread is a significant indicator of financial conditions, making borrowing cheaper for companies. Despite the current high interest rates, there is almost no risk premium demanded from companies seeking to borrow. This trend signifies a strong appetite for corporate debt in the current market. For further details, visit Benzinga.com.