After trading with a heavy tone for the last couple weeks, the high yield market showed some signs of life yesterday, ending with a better bid for credit as ETF sell pressure eased and a few more buyers stepped in. The market will continued to keep a close eye on Treasury yields and retail flows for direction, as fear of higher rates and massive outflows have kept new money on the sideline during this weakness, after the strong rally to start the year. $2.3 billion priced between five high yield deals yesterday, cleaning up some of Friday’s left over pipeline and clearing out a good chunk of the forward calendar. One deal has been announced this morning, expected to price this afternoon, but the calendar is very light away from that. Stocks and credit indices (HY19 Index) are opening slightly higher this morning, while high-yield cash feels a little better bid again on light volume. Stock’s trading modesty higher this morning before Obama’s State of the Union address. High yield went out with a better bid as ETF sell pressure eased.
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