A rare bond market signal just re-emerged in mid-August 2025, one not seen since 1998 — and back then, it was the calm before one of the most explosive bull markets in U.S. history.
- LQD is breaking past resistance. Check live prices here.
The spread between U.S. investment-grade corporate bonds and Treasury yields has collapsed to just 75 basis points, the lowest level since June 2008.
This means investors are demanding almost no additional compensation to buy corporate debt instead of risk-free U.S. Treasuries.
In plain terms, the bond market is showing extreme confidence in corporate America’s ability to repay debt, and companies are taking full advantage.
No Extra Premium Needed—Wall Street Loves Corporate Debt Right Now
The investment-grade credit spread is a crucial barometer for financial conditions.
When it narrows, borrowing becomes cheaper for companies — and that’s exactly what’s happening. Despite elevated interest rates, there’s no almost risk premium being demanded from companies to borrow …