Investment grade corporate bonds have generally moved alongside the stock market throughout the bull market. In recent days, however, investment grade corporates have moved lower even as stocks have risen. Below is a chart of the iShares iBoxx Investment Grade Corporate Bond Fund ETF (LQD) since the March lows. As shown, the ETF had been in a tight uptrend for months until just last week when it broke below its 50-day moving average. With the uptrend now broken, it will be interesting to see what, if any, impact this has on equity markets.
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