Aug 5 (Reuters) - U.S. junk bond spreads over yields on

risk-free Treasuries posted the biggest daily points surge since

March 2023 on Friday, an indication that financial markets see

much more risk now that stocks have turned sharply lower and

investors have rushed to the safety of U.S. government debt.

The ICE/BofA U.S. high yield index option adjusted spread

surged 37 basis points to 372 bp as of late Friday.

The ICE/Bof A U.S. Investment Grade Corporate Bond Index spread

posted its biggest jump since May 2023 and closed at

106 bp.