Leader Week in Review
Economic Data Releases:
Weekly Market Action:
Risk is back “ON” with the back-end of the Treasury yield curve selling off and credit rallying. This is even more evident when looking at the month-to-date returns within the fixed income asset class, with High Yield leading the way (see table below).
Much of the positive return in High Yield has been driven by the 179 basis points of tightening seen in High Yield Energy spreads (see chart 1). In turn, energy credit spreads have tightened since the sharp decline in rig count has seemingly put in a bottom in oil prices, similar to the last cycle in 2008 (see chart 2).
Upcoming Economic Data Releases: