High yield bonds are a touch weaker today on the back of the longer-dated Treasury yields rising. Yesterday, the Bloomberg Barclays US High Yield Index was down 0.16%.* Oil was down earlier this morning on a stronger US dollar, but has now reversed and is flat on the day as the IEA reported a bigger drawdown than estimated.
A healthy sign for the high yield market is that new-issues are picking up despite outflows from the high yield index-tracking ETF’s yesterday, as two more deals for $1.15B in proceeds priced yesterday and six more are on the forward calendar for this week.
Housing starts and permits were below estimates, could this be a reaction to higher interest rates?