1.   Given the higher risk associated with equity, a positive yield gap would be expected.

2.   As currency volatility in Europe has fallen, yield gaps between European government bonds have also narrowed, as investors put on so-called convergence trades.

3.   As monetary union approaches, yield gaps among different markets have compressed in anticipation of currency risk disappearing.

4.   Given that, Partridge expects to see a slight narrowing in the yield gap between corporate bonds and Treasuries.

5.   Hopper owns more corporate bonds than his investment guidelines require and said he plans to purchase more if the yield gap widens.

6.   In the quarter, revenue rose at a faster rate than volume, resulting in a positive yield gap -- the difference between the growth in revenue and volume.

7.   Now Hamilton says he has found a way to close the yield gap.

8.   Still, the yield gap on regular corporate bonds was unchanged yesterday.

9.   That is likely to reduce the number of defaults and credit downgrades, which would lower the value of corporate bonds by widening the yield gap against Treasuries.

10.   That yield gap has steadily narrowed over the last several years, thanks to steady economic growth, low interest rates and growing demand from investors.