US credit spreads eased on October 2 after widening beyond the weakest borrowers

US corporate credit spreads widened beyond the weakest borrowers from September 25 to October 1, creating a broader test of whether tighter financing and reduced institutional risk-taking could pressure Bitcoin. The largest increase remained concentrated in CCC-and-lower debt, while investment-grade bonds showed a much smaller rise.These option-adjusted spreads measure the premium over a Treasury curve. Their widening shows investors demanding more compensation to hold corporate debt. A borrower's total interest cost also depends on the Treasury component.The ICE BofA CCC credit spread climbed from 11.28% to 12.15%, an increase of 87 basis points. Over the same dates, the broad high-yield spread rose from 2.93% to 3.24%, or 31 basis points. The investment-grade corporate spread increased from 0.81% to 0.86%, or 5 basis points.All three comparisons use daily closing observations for September 25 and October 1, 2026. FRED's October 5 updates added October 2 readings of 12.02% for CCC-and-lower debt, 3.10% for broad high yield and 0.85% for investment-grade debt. All three eased from October 1 while remaining above their September 25 levels.The investment-grade move is the clearest ev...