The Dow Jones continues to hit new record highs, notching another 300 points yesterday to close above 21,000 for the first time as investors bet on the Trump administration and global growth. After a brief pause to the high-yield bond rally on Tuesday, credit markets moved in synchrony with equities yesterday pushing the yield-to-worst/spread on the Bank of America High-Yield Index 7bps/17bps tighter to new YTD lows of 5.57%/+357bps. For perspective these levels compare to recent lows of 4.85% and +337bps back on 6/24/2014. No deals priced yesterday but activity returned with two new deals being added to the calendar for $1.3 billion in proceeds. Treasuries weakened across the curve yesterday with the yield on the US 10yr note widening 6bps to 2.45%, as markets are now pricing in an 80% probability of a March interest rate hike. WTI continues to trade with a heavy tone due to the strong dollar and following an EIA report that showed US crude stockpiles at record highs, closing at $53.83, down 0.4% over the past two sessions after hitting an 18-month high of $54.45 last week. High-yield bonds are opening mixed this morning as oil trades lower again and data showed jobless claims fell to 223k for the week ended 2/25, the fewest since March 1973. After a slow stretch for the primary market, things are heating up this morning with several new deals being added to the calendar for pricing over the next couple days.

The Bank of America Merrill Lynch US 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.