The Spread Between High Yield Bonds and 10-Year U.S. Treasury Bonds

Despite all of the news about tariffs and trade, the spread between high yield junk bonds and 10-year Treasuries is currently within 10% to 20% of the narrowest spreads that have occurred over the past 10 years, and more than 35% below the 30-year average spread. In other words, the bond market is suggesting the U.S.economy is in good shape and growth is not a concern at this time.