Midday Commentary: Investment-grade bond spreads soften

By Cristal Cody

Tupelo, Miss., Aug. 15 - Investment-grade bond spreads widened early Thursday from concern about central banks' commitment to keep rates low in Europe and the United Kingdom due to stronger economic data, sources said.

"Little softer," one trader said.

The Markit CDX Series 20 North American Investment Grade index ended Wednesday unchanged at a spread of 75 basis points.

"U.S. investment grade credit spreads currently sit near the top-side of the narrow 5 bps range they have traded in for the last month," RBC Capital Markets, LLC analysts said in a note on Thursday.

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