Corporate Spreads Widen After Dull Jobs Report |
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July 08, 2011 |
July 2011 Bond Updates
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Corporate bond spreads relative to treasury had narrowed all week long on growing optimism that the second-half of the year might deliver a rebound for growth. Equity prices had earlier in the week approached the year’s most optimistic point only to come crashing down in response to a rather limp reading of the labor market. Yesterday’s optimism today came screaming down as the official government tally was so incredibly wayward that it send government bond yields scurrying lower. But instead of blindly following the lead of government securities, corporate debt prices responded with some understandable caution forcing spreads to reluctantly widen back out again.
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View more at: http://blogs.forbes.com/greatspeculations/2011/07/08/corporate-spreads-widen-after-dull-jobs-report/
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