The Baa-10-year treasury spread (top chart) is at a 10-year low. This is a leading indicator. The AAA-10-year spread (bottom chart) is also a 10-year low. This chart shows that the market is still searching for yield.
After spiking earlier this year, CCC yields (top chart) have come in 45 basis points. This was a potential problem sign as this section of the bond market is the first to widen when trouble emerges. But the problem never cascaded out into the BBB market.
The 30-day asset-backed commercial paper spread (top chart) that I wrote about on Friday has come back in. But it's still in the middle of a short-term uptrend as is the 90-day market (bottom chart).
