The high-yield rally paused Tuesday, ending a nine day tightening streak and even longer inflow run as investors showed some caution after a slump in Chinese exports reignited concerns over the health of the global economy, causing equities around the world to lose ground. The yield and spread on the Bank of America High-Yield Index widened 5bps and 11bps to 8.59% and +714bps yesterday, respectively, while the spread on the US 10-year note tightened 8bps to 1.83% and the asset class saw its first outflow in several weeks totaling -$355 million. This morning we’re opening flat to slightly better in sympathy with higher equity and oil and on speculation of more ECB stimulus on the horizon. One new deal priced yesterday for Level 3 Financial and one more is slated for Sinclair Broadcasting as the big, well known issuers  continue to take advantage of the strong primary market conditions.

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.