High-Yield Bonds Tumble To Critical Support

Tyler Durden's picture

We're gonna need another CAT...

High yield bond prices are tumbling...


To crucial 50-/100-DMA support...


And as VIX topped 12 for the first time since September 8th (and is above its 200DMA)


It suggests HY has a long way to go yet...

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Cognitive Dissonance's picture

So close to Halloween?

The only thing Wall Street is frightened of is the truth about the US economy.

spastic_colon's picture

theres that "slammed" word again...........they were "slammed" upward the last 5 days

Dragon HAwk's picture

Somebody Big selling Stocks, for Airfare out of the Country and Bribe Money.

wisehiney's picture

All the big talk about higher rates.

Going out the window soon.


itstippy's picture

CAT finally caught a break thanks to the hurricanes.  Everyone is scrambling to get the big equipment on site and make some money repairing the damage.  The same thing happened after the Kobe, Japan earthquake in 1995 and the shale oil boom in the U.S.

Stock market performance will continue to be determined by Central Bank monetary policies and Central Government fiscal policies (taxes).  Those are the only "fundamentals" that count anymore.  Bellwether DOW companies like CAT just aren't that important today.

lester1's picture

Wait until Trump's tax cuts pass and blow a giant hole in the budget deficit!! Bond yields will spike and cause another financial crisis!!

spanish inquisition's picture

What's a high yield bond now 3-4%?

tecno242's picture

HYG top holdings range from 6 to 11%.. average is probably around 8.25%.

ffed's picture

Booted off TWITTER I went to Gab.ai and THIS HAPPENS......  https://www.youtube.com/watch?v=uOdzV3P2c7s&feature=youtu.be

kavabanga's picture

It's only begining i guess...

Watch US10 charts it's clear they will fall further.