High-Yield Bonds Tumble To Critical Support

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...

Comments

itstippy Wed, 10/25/2017 - 11:02 Permalink

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 Wed, 10/25/2017 - 11:01 Permalink

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!!