Despite a bout of pronounced weakening midway through, investment grade credit spreads tightened once again during the third quarter. This makes eight quarters in a row of positive excess return – a winning streak that has only been surpassed once in the last 20 years. The option-adjusted spread on the Bloomberg Barclays Corporate Bond Index tightened 8 basis points (bps) to 101 over the three-month period ending September 30, 2017. This compares to 123 bps at the beginning of the year, and 138 bps at the end of 3Q2016. In the U.S. Treasury market, the benchmark 10-year yield increased from 2.301% to 2.326%, after having traded as high as 2.392% and as low as 2.060% during the quarter.