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But although the OBR's outlook is a bit sunnier than the average of recent independent forecasts compiled by the Treasury, the difference is not that great.Mr Chote pointed out that the OBR expects a more sluggish return to economic health than in previous post-war recoveries.
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This implicit guarantee is slightly less airtight than the pledge on Treasurys, but the difference is probably academic.
In order to operate in this manner, the Treasury Department has to issue treasury bills, treasury notes and treasury bonds to compensate for the difference.
Rates on corporate debt have fallen much more slowly than on Treasuries, more than doubling the difference between corporate and government interest rates before the recession.
And the difference in yield between United States Treasuries and munis has recently been as much as 2.5percentt.
The selling of longer-dated Treasuries in favor of short-term issues caused the difference in yields between them to widen to new seven-year highs.
The spread -- the difference in interest rates between Treasuries and corporate bonds -- has generally widened since Sept. 11, although not across the board.
The performance of Treasuries against other fixed-income markets is measured in the difference -- or spread -- between the yields on comparable maturities.
This figure is simply the difference in yield between 10- year treasuries and 10-year TIPS (whose yields adjust for inflation).
The first chart shows the difference between the yield on two-year Treasuries and the Federal Reserve's target rate for federal funds — the rate on loans between banks.
"From a valuation perspective, the difference in yield between corporate bonds and Treasuries is at a historically wide point," Mr. Kennedy said from his office in downtown Chicago.
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