High Yield Morning Update

Yields dropped and spreads tightened yesterday as oil rebounded and stocks traded flat on what was an overall quiet day for the markets. The yield-to-worst/spread on the Bank of America High-Yield Index tightened 10bps/7bps on the day to close at 5.88%/+394 bps vs YTD lows of 5.57% and +355bps at the start of this month. The primary market remains on the slow side with just two deals pricing WTD for $2 billion in proceeds. Despite the slow week, MTD issuance volume of $36.835 billion makes it the busiest month since April 2014. WTI closed the day at $49.51, up 2.36%. The US 10yr Treasury note closed at a yield of 2.38% vs 2.42% the prior day. This morning high yield continues to trade with a positive tone amid better oil and flat stocks and treasury markets. Several drive-by deals have been announced this morning with pricing expected this afternoon and tomorrow.

The Bank of America Merrill Lynch US High Yield Index monitors the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.  Index data sourced from Bloomberg. Yield referenced is the yield-to-worst and spread referenced is the spread-to-worst.
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