According to a report by Bloomberg, US-investment-grade corporate bond spreads have breached a level not seen since 2022, with investors betting that the Federal Reserve has reached the end of its rate hiking cycle.

The report noted that high-grade spreads fell three basis points Wednesday to 110 basis points, according to Bloomberg index data. Spreads on speculative-grade bonds dropped six basis points to 380 basis points — the lowest since September — while the average price on leveraged loans has reached 95.2 cents on the dollar.

While many analysts expected spreads to end the year tighter from last year,  and recession fears waning they may drop even further, the report added.