However, investors can reasonably expect increased ahead as the Fed begins this next phase of QT. The Fed forecasts a rise in the overnight lending rate and continued unloading of the . This is likely to stress the equity and investment grade bond valuations which are currently 'priced to perfection'.
Here's another look at these indexes separately, instead of as a spread
ML investment grade bond yield in purple
SPX trailing earnings yield in orange (E/P ratio)