Argus

β€’

Mar 18, 2026

Market Outlook

Bullish

-

Short

Summary

Treasury bond yields have moved back up on fears of oil-price-driven inflation in the months ahead, this as the war with Iran continues. Corporate bond yields have risen as well -- and at a faster rate as bondholders factor in potential recession fears stemming from the high oil prices. As a consequence, spreads between corporate and Treasury bond yields have widened in recent weeks, though they remain near historical averages. For example, the spread between AAA-rated corporate bonds and 10-year government bonds in mid-March was 128 basis points (bps), up from a low 107 bps last October and a bit above the historical average of 122 bps. The gap between the government 10-year bond yield and a BAA-rated bond (still investment grade) in mid-March was 183 basis points, below the historical average spread of 227 bps but up from 168 last fall. We watch these spreads closely for a couple of reasons. From an asset-allocation standpoint, wider corporate bond spreads signal that corporate bond val

Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level

Sign in to access your portfolio