The high-yield market was better to open the new week and quarter yesterday as oil hit a three-month high amid expectations that the tentative agreement among oil producers last month will become formal at OPEC’s next meeting in November. The strong technical backdrop to the market remained in place as retail funds reported more inflows Friday and Monday after reporting a $2 billion influx over the past week. The yield to worst and spread on the Bank of America High-Yield Index tightened 1bp/4bps to close at 6.24%/+493bps yesterday, respectively. Issuance was quiet amid religious holidays and lackluster equity markets; the forward calendar remains steady but the pace has definitely slowed. WTI closed up 1.18% at $48.81, a three-month high. Overnight the USD strengthened and treasury yields widened after hawkish comments from Fed officials increased bets on a rate hike before the end of the year. High yield is opening with a strong tone again this morning as players continue to look for places to invest fresh capital.

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.