High yield corporate bonds were weaker yesterday as outflows hit the market and we are opening weaker today too. Bid wanted lists increased dramatically over offer wanted list to the tune of $918M vs. $297M, respectively, in another sign of market weakness.  The yield curve has flattened and the 10-Year Treasury yield is hovering around its 6-month and YTD low.  With the ECB cutting its inflation forecast through 2019, investors are waking up to the fact that some rabbits need to be pulled out of the hat by the US to spur world economic growth, but with gridlock in our nation’s capital this doesn’t appear to be happening any time soon.  We expect to see more of this today as Comey takes center stage.  With oil trading down again at $45.5 and the high yield indexes still holding a big energy weighting (for instance, 15% energy concentration in the JP Morgan US High Yield Index), could we see weakness again in the broader high yield market tied to energy?  We have started to see a decoupling of energy volatility with high yield returns over the past couple months; for more data on this see our recent market commentary, The Decoupling of High Yield and Energy.