High-yield bond spread is 3.27 points, up from a 2026 low of 2.60 in August

The extra yield that investors demand to hold US high-yield corporate bonds instead of Treasuries was 3.27 percentage points on October 21, 0.67 point above its August low, according to ICE BofA index data published by the St. Louis Fed.

High-yield bonds

The option-adjusted spread on the ICE BofA US High Yield Index was 3.27 on October 21, compared with 3.33 the previous day, 3.29 on October 19 and 3.31 on October 16. It was 2.97 a year earlier. The 2026 range runs from 2.60 on August 28 to 3.46 on March 30. The August low to October 21 reading is an increase of 0.67 point (computed).

Investment-grade bonds

The spread on the ICE BofA US Corporate Index, which tracks investment-grade bonds, was 0.88 on October 21, compared with 0.79 a year earlier, according to the series. The 2026 range runs from 0.73 on January 22 to 0.94 on March 16; the reading is 0.15 above the January low (computed).

What a spread is

A spread is the yield on a bond index minus the yield on a comparable Treasury. A wider spread means investors are asking for more compensation for credit risk. Spreads can widen when yields on Treasuries fall as well as when corporate yields rise.

The same week

The VIX volatility index, which measures expected stock-market swings, rose to 19.99 on October 16 and was 16.68 on October 21, according to FRED. The high-yield spread moved from 3.23 on October 15 to 3.31 on October 16 and 3.27 on October 21, so it widened by 0.08 point on the day volatility rose and has since narrowed by 0.04 point (computed).

About the data

The ICE BofA series on FRED run a day or two behind the market; the latest observation is October 21. The Treasury Department's daily yield curve showed the 10-year yield falling to 4.96% on October 22, after the latest spread reading.