High yield bonds prices and yields continued to move lower/higher yesterday, fading into the close after a strong open, trading at levels not seen since 2009 amid continued volatile market conditions and more outflows from the asset class. Primary market activity has slowed to a standstill this week with no deals pricing and nothing on the calendar. The yield to worst and spread on the Bank of America High Yield Index moved 2bps and 7bps wider yesterday to close at 8.43% and +672bps, respectively. The risk averse focus of the market remains intact with the BAML CCC index leading the move lower and now trading with a 17.08% yield, its widest level since July of 2009. High-yield fund outflows accelerated  Wednesday to $2.25 billion as mutual funds had a massive broad-based withdrawal of an estimated $1.75 million, the largest single day outflow on record.  This morning we’re opening flat to slightly lower with a quiet tone and buyers of high beta credit remain in hiding. Treasuries are higher in early trading with the US 10-year note trading at the low end of the recent yield range at 2.21%, while oil continues to trade with a heavy tone out of the gate.

The Bank of America Merrill Lynch 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.