CREDIT DAYBOOK AMERICAS: High-Grade Spreads at Fresh 27-Year Low

US investment-grade bond spreads again hit their tightest level of the millennium on Thursday, as investors positioned following the Federal Reserve’s first rate cut of the year.

• Premiums of just 72 basis points above comparable Treasuries, the lowest reading since 1998 according to Bloomberg index, keeps the issuance window extremely attractive for high-grade borrowers
  • Following Thursday’s $14.8 billion session led by $5 billion offerings from AT&T and UBS, this week’s $34 billion of supply has topped dealers’ forecasts
• It’s a very sanguine market, with credit-fear gauges for both investment-grade and junk bonds closing at their best levels since Feb. 20 ...