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While the S&P 500 has gotten off to a positive start to 2012, the performance of the high yield bond market has been equally or even more impressive. At the end of 2011, high yield debt was trading 738 basis points above US Treasuries. So far this year, spreads have narrowed by more than 5% to 700 bps. The next level of interest in this chart is 683, which was the low point in spreads following the October rally.

Source: High Yield Spreads On The Decline