High Yield Corporate Bond Spread
ICE BofA US High Yield Index Option-Adjusted Spread.
2.72
Percent
Min
2.59
Max
4.69
Average
3.26
10Y Percentile
8%
3M Change
-0.7%
3-Month
-0.7%
6-Month
-2.9%
12-Month
-3.5%
What this means
The high‑yield spread sits at 2.72%, near the low‑end of its range and has been stable, showing investors view credit risk as modest. This points to a broadly optimistic credit environment.
When spreads are this low, high‑yield bond prices and returns usually climb, but the tight spread can later tighten further if risk sentiment shifts.
Frequently Asked Questions
What is the high yield spread?
The high yield spread measures the difference between yields on high yield (junk) corporate bonds and Treasury bonds of similar maturity. A wider spread means investors are demanding more compensation for credit risk — a sign of stress or pessimism.
What do credit spreads tell you about the economy?
Widening spreads often precede economic downturns — they signal that investors are worried about corporate defaults. Tight spreads indicate confidence and easy financial conditions. Credit spreads are one of the most reliable forward-looking stress indicators.