Corporate bond spreads are opening about a nickel tighter.
Here are a couple of examples of how tight spreads are.
Five year Walmart paper is quoted 30/20 this morning.
Ten year Walmart paper is 65/55.
Microsoft 5 year paper is 30/25.
Microsoft 10 year paper is 55/50.
To give those numbers some perspective, one need only look to 5 year FNMA and Freddie Mac paper which is trading around 26 basis points.
Which means that WMT and MSFT paper trades essentially on top of paper which has a bear hug of the US government.