I was wondering about this earlier and I'm stumped.

closed as off-topic by Chris W. Rea, Rupert Morrish, Dheer, JoeTaxpayer Jul 12 at 2:06

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  • Corporate bond spreads are a measure of liquidity, risk, and the general economic/market condition. Change in the spread isn't completely linear so at times, there are periods of fluctuation in a wider long term cycle. That might account for your observation. My understanding of them is limited and therefore, I couldn't drill down in a micro economic sense and explain why it's happening now or at any other point in time. – Bob Baerker Jul 9 at 21:26

If interest rates are falling overall, this increases the general valuation of the stock and bond markets. If there is also some concern about economic weakness, and/or strong demand for Treasurys, this could increase corporate bond spreads because corporate yields may fall but not as much as Treasury yields.

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