U.S. investment-grade corporate bond spreads have narrowed to their lowest levels in over three years, with some indicators reflecting the lowest spreads since March 2005 and even as far back as 2005-2007. The spread between U.S. corporate bonds and government bonds has fallen to 2.99%, marking the lowest level since 2007. This trend is viewed as a sign of increasing investor confidence in the U.S. economy, although some analysts express caution, recalling the pre-2008 financial crisis environment. Concurrently, the VIX index remains elevated, trading at approximately 20 points, indicating market volatility despite the narrowing spreads.