Last week all eyes were on the Short Squeeze In Financials, triggered by a SEC Order To Protect Those Most Responsible For Naked Shorting, and fueled by nearly everyone going ga-ga over fabricated earning reports at Wells Fargo and Citigroup.



However, most missed the quiet but extremely important action in the corporate bond market. Please consider Bond Sales Slow to $5.3 Billion as Spreads Approach March Highs



Corporate bond sales fell to $5.3 billion this week as the yield over benchmark rates that investors demand to own the debt approached the highest levels of the year. Sales compare with $11.7 billion last week, according to data compiled by Bloomberg.



Issuance slowed as the average spread on investment-grade bonds climbed to 7 basis points shy of its 2008 high and junk- bond spreads surpassed 800 basis points for the first time since March.



Overall corporate sales compare with a weekly average this year of $21.2 billion.



The extra yield investors demand to own investment-grade bonds rather than U.S. Treasuries climbed 9 basis points to 297 basis points as of yesterday, compared with 305 basis points reached on March 20, according to Merrill Lynch & Co.'s U.S. Corporate Master index.

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