1. Analysts think yield spreads will narrow, though credit risk will prevent them moving closely in line. 2. As Treasury yields sank and yield spreads narrowed, companies locked in some of the lowest borrowing rates in recent memory. 3. Barring a bond market rally, yield spreads could narrow in coming days, they said. 4. Academics, regulators, and exchange officials expect spreads to narrow, to the benefit of institutional and individual investors. 5. After that the interest-rate spread narrowed, closing the door on the carry trade. 6. Allen said he expects the spread to narrow during the next few months, especially if the Bank of Canada chooses to lower interest rates without the Fed. 7. But the interest-rate spread is narrowing, as banks face growing competition from brokerage firms and mutual funds for customer assets. 8. His expectation is that the spread will narrow to zero in the coming months, with German yields possibly falling below U.S. levels by Christmas. 9. If both countries adopt a common currency, bond yield spreads should narrow to reflect reduced currency risk. 10. Investors said the spread should narrow further in the coming weeks as more international investors are drawn into the market. |