DTYS - Bond Market Week In Review For January 21-25
There were no major U.S. Federal Bank speeches this week, so let's dive into the market overall, starting with corporates.
CCC yields (in blue) widened sharply between 10/18 and 12/18, rising about 425 basis points (left scale). Spreads have tightened a bit since then, coming down to about 12%. A more dovish Fed is the primary reason for this easing of yields. In fact, this week the Financial Times reported that the high-yield market had started to thaw, although that easing didn't apply to all industries. BBBs have also eased, with yields dropping