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US corporate credit spreads narrowed on October 2, 2026, after widening from September 25 through October 1—but the pullback did not erase the earlier increase. The reported October 2 spreads remained above their September 25 levels. The move reached investment-grade debt as well as high-yield bonds, though it was much larger for the lowest-rated borrowers.

What changed in US credit spreads?

CryptoSlate reported that the ICE BofA option-adjusted spreads widened between September 25 and October 1, then eased on October 2. The figures below are daily observations as reported by CryptoSlate, not independently audited calculations.

Spread measure September 25, 2026 October 1, 2026 Change through October 1 October 2, 2026
CCC-and-lower 11.28% 12.15% +87 basis points 12.02%
Broad high yield 2.93% 3.24% +31 basis points 3.10%
Investment grade 0.81% 0.86% +5 basis points 0.85%

CryptoSlate attributed the October 2 values to observations included in a FRED update on October 5. On October 2, all three measures were below their October 1 readings but still above September 25: CCC-and-lower by 74 basis points, broad high yield by 17 basis points, and investment grade by 4 basis points. These date-to-date differences are calculated from the reported figures. Read CryptoSlate’s report.

Did the widening reach beyond the weakest borrowers?

Yes, in the limited sense that the reported investment-grade spread also increased from September 25 to October 1: 5 basis points, compared with 31 basis points for broad high yield and 87 basis points for CCC-and-lower debt. That supports saying the widening was not confined to the weakest-rated category. It does not, by itself, establish widespread credit distress or a broader funding crisis.

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The categories overlap: CCC-and-lower bonds are part of broad high yield. Their readings therefore describe related market segments, not three separate pools that can be added together. CryptoSlate’s account reports the observations and describes the relevant spread series.

What a credit spread measures—and what it does not

An option-adjusted spread (OAS) is a premium over a Treasury reference curve, adjusted for embedded options. A wider spread means investors demand a larger premium for the corporate debt represented by that measure. It is not the bond’s total yield: Treasury yields are a separate component, so a change in OAS does not mean the bond’s overall yield changed by the same amount. CryptoSlate describes the reported figures as option-adjusted spreads in its coverage of the move.

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Why did spreads ease on October 2?

The reported figures establish that spreads narrowed that day; they do not establish why. The available reporting does not link the move to a particular catalyst, so it would be unwarranted to attribute it to the employment report, Treasury yields, or another market event. Same-day movement in another market is not proof of what caused a change in credit spreads.

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