(Bloomberg) -- The extra yield U.S. corporate bonds offer compared with Treasuries approached a six-year low as investors speculated the economy will pick up after the North American winter ends.
Bonds in an index of investment-grade company debt yielded 1.24 percentage points more than government securities on average, based on Bank of America Merrill Lynch indexes. The spread was 1.22 percentage points in January, the smallest difference since July 2007. The U.S. is scheduled to sell $109 billion of notes this week. Snow and ice storms have pummeled the eastern U.S. this year, depressing the economy as data on retail sales and employment were weaker than forecast.
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