The high-yield market was quiet and marginally weaker yesterday after the long holiday weekend as many took an extra day off with European markets still closed. The yield and spread on the Bank of America High-Yield Index widened 4bps and 5bps to 8.45% and +699bps,into respectively. Fund flows into retail funds on Monday were mildly negative at -$15 million, while the market is in the middle of an inflow streak that has spanned six weeks and seen over $13 billion enter the asset class from a broader perspective. This morning we’re opening lower by ¼ of a point generically as crude breaks through $39 a barrel, lower for the fourth consecutive day, weighing on equities. Treasuries are higher this morning ahead of a speech from Fed Chair Yellen this afternoon as the debate continues over the direction of policy. The new issue market was active yesterday despite the quieter tone with two deals pricing for $1.4 billion in proceeds and at least two more deals are set to price throughout today’s session.

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.