US Corporate Bond Spreads Sink to 27-Year Low as ‘FOMO’ Sets In

A key measure of US corporate-bond valuations surged to the highest level in nearly three decades as investors raced to lock in still-elevated yields amid speculation that the Federal Reserve will resume cutting interest rates next month.

The extra yield that investors receive for owning investment-grade corporate bonds instead of Treasuries shrunk to just 73 basis points Friday, the lowest since 1998, according to Bloomberg index data.