US high yield enjoyed a relief rally on Monday - Deutsche Bank

By FXstreet.com | August 05, 2014 AAA

FXStreet (Łódź) - Jim Reid from Deutsche Bank notes that the lower than expected US NFP reading on Friday as well as the relative stability of US rates resulted in a relief rally in US high yield yesterday.

Key quotes



"Indeed, the CDX High Yield index posted a gain of three-quarters of a point, which was its best performance since May 22nd and the iBoxx USD Liquid High Yield index rallied 8bp in yield terms to 5.90%."



"Over the past month, the latter has sold off by just under 100bp in yield terms, which leaves the index at pretty much flat on the year."



"We suspect that this repricing of risk is a welcome development at the Fed who has warned repeatedly about the froth in the lower-rated parts of the credit market in recent months."



comments powered by Disqus
Related Forex Analysis
  1. USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation
    Forex News

    USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation

  2. USD/JPY is dancing around 107.00
    Forex News

    USD/JPY is dancing around 107.00

  3. USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision
    Forex News

    USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision

  4. NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades
    Forex News

    NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades

  5. EUR/USD sidelined above 1.2700
    Forex News

    EUR/USD sidelined above 1.2700

Trading Center