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Fear produced a ballooning of the interest rate spread.
The negative contributors were housing permits, manufacturers' new orders for nonmilitary capital goods and interest rate spread.
It recalled that a year ago the interest rate spread between Greek and German bonds was 1 percentage point.
A measure of supplier deliveries, rising stock prices, an increase in consumer expectations, a jump in building permits and the interest rate spread helped the index in August.
The interest rate spread between Italian and German bonds is now higher than it was before the big European rescue package was announced.
Of the 10 indicators that make up the leading index, 5 decreased in April -- real money supply, stock prices, consumer expectations, initial unemployment claims and the interest rate spread.
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The average interest-rate spread over the Libor for an A-rated borrower has been halved, from 145 basis points in the second quarter of 2009 to around 70 basis points today, according to Thomson Reuters.
The interest-rate spread offered by high-yield, or junk, bonds over Treasury bonds is thinner than ever.
The interest-rate spread on its five-year government bonds widened to a record 4.1 percentage points over German bunds.
Exotix, a broker, calculates an average interest-rate spread of Eurobonds from 50 frontier markets (compared with Treasuries).
Meeting with investors last December, Sallie Mae officials said that its average interest-rate spread on variable loans was 10 percentage points.
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