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mpc: 4 The historically low level of credit spreads was another puzzle considered by the Committee. Spreads suggested that there was a continuing `search for yield' consistent with an increased appetite for risk. However, there had been some signs over the past month that the compression of spreads might be beginning to unwind, perhaps reflecting the earlier rise in longer-term rates and the recent General Motors profit warning. So far, this unwinding had been orderly, without the liquidity problems and pricing distortions seen in some previous episodes. But spreads were still low, and it was still not certain that their adjustment to more normal levels would be smooth.