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Freedom251 › Blog › Corporate Bonds

US Credit Spreads Eased on October 2 After Widening Across Rating Tiers

By Freedom251 Team · · 2 min read

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US corporate credit spreads fell on October 2, 2026, after rising from September 25 through October 1—but the easing did not erase the earlier widening. The October 2 readings remained above their September 25 levels, and the largest increase over the period was in CCC-and-lower debt.

What changed in US corporate credit spreads?

CryptoSlate reported that option-adjusted spreads widened between September 25 and October 1, then narrowed on October 2. Its figures, attributed to daily observations and reported after a FRED update on October 5, show that all three rating measures were still higher on October 2 than on September 25.

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Measure Sept. 25, 2026 Oct. 1, 2026 Change, Sept. 25–Oct. 1 Oct. 2, 2026
ICE BofA CCC-and-lower OAS 11.28% 12.15% +87 basis points 12.02%
ICE BofA broad high-yield OAS 2.93% 3.24% +31 basis points 3.10%
ICE BofA investment-grade corporate OAS 0.81% 0.86% +5 basis points 0.85%

The dated sequence and September 25–October 1 figures were reported by CryptoSlate. The October 2 observations were also reported there as values in FRED’s October 5 update. They are secondary-reported daily readings, not an independent audit of the underlying series.

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Did the widening reach beyond the weakest borrowers?

Yes, in the limited sense that the reported investment-grade spread also increased between September 25 and October 1: it rose 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 tier. It does not, on its own, establish a broad credit crisis or predict defaults.

The measures overlap: CCC-and-lower bonds are included in broad high yield. They are rating-tier indicators, not three separate, non-overlapping segments whose changes should be added together.

What does a wider spread mean?

An option-adjusted spread (OAS) is a premium over a Treasury reference curve, adjusted for embedded bond options. A wider spread means investors are demanding a larger premium for the relevant corporate debt relative to that reference. It is not the bond’s total yield: Treasury yields are a separate component, so a spread change does not mean the total yield changed by the same amount.

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Why did spreads ease on October 2?

The reported figures establish that spreads narrowed that day, but they do not establish a cause. They do not link the move to the employment report, Treasury yields, or another catalyst. Without evidence connecting an event to these spread observations, the October 2 easing should be described as a one-day decline in the reported measures—not as a proven market reaction or a full reversal of the prior widening.

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Corporate Bondscredit spreadshigh-yield bondsinvestment-grade bondsUS credit markets

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