Yield Spread Still Wide

03/12/2009 11:40 am EST

Focus: ETFS

Thomas Aspray

, Professional Trader & Analyst

chart

The gap between the yield on corporate bonds (HYG) and that of the 20-year treasuries is still wide. The disparity is due in part to the market factoring in a high corporate default rate. Technically, HYG may be forming a double bottom in the $61.50 area. TLT is at support in the $100 area with resistance at $107.

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