Rare bond market signal, not seen since 1998, re-emerged in August 2025 with LQD breaking past resistance. US investment-grade corporate bonds and Treasury yields spread has fallen to 75 basis points, lowest since June 2008. Market showing extreme confidence in corporate debt, with no extra premium needed to buy compared to risk-free Treasuries. Corporate America taking full advantage. Investment-grade credit spread narrowing, making borrowing cheaper for companies despite elevated interest rates. Wall Street favoring corporate debt currently.
In August 2025, a rare bond market signal emerged, last seen in 1998, with LQD breaking past resistance. The spread between US investment-grade corporate bonds and Treasury yields fell to 75 basis points, the lowest since June 2008, indicating strong confidence in corporate debt. This trend allows Corporate America to borrow more cheaply despite high interest rates, as Wall Street currently favors corporate debt, reflecting a positive outlook among investors.
Unusual Whales·