Advantage Data High Yield Bond Market Summary

WEAK TRADE DATA CASTING DOUBT ON GERMANY’S ECONOMIC  STRENGTH . German exports and imports declined more than expected in February dropping by an aggregate of 1.3 percent  in February. German exporters are suffering from a   slowing world economy, trade disputes and Brexit angst.  The trade surplus edged up to   18.7 billion euros  from a   revised 18.6 billion euros the previous month. German industrial orders fell by the biggest margin in more than two years.   Brexit deadline is looming and a “no-deal Brexit makes no sense and is the worst possible solution,”   stated European Agriculture Commissioner, Phil Hogan. The  UK 10-year Gilt  declined one-tenth of a basis point.   FTSE 100  +0.07%,  STOXX Europe 600 -0.19%,  CAC 40 +0.38%,  German DAX -0.39%.

U.S. EMPLOYMENT ACCELERATED IN MARCH growing by 196,000 jobs rebounding from a 17-month low in February. “This was a Goldilocks report, with a rebound in job growth to calm fears of an imminent recession, and wage growth that was solid enough without triggering inflationary concerns,”said Curt Long, chief economist at the National Association of Federally-Insured Credit Unions.  10-year Treasury note shed 2.2 basis points. Equities rise to six month highs amid strong economic data, S&P+0.44%, DOW +0.18%, NASDAQ +0.58% 

U. S.   EMPLOYMENT ACCELERATED IN MARCH  growing by 196,000 jobs rebounding   from a 17-month low  in February.   “This was a Goldilocks report, with a rebound in job growth to   calm fears of an imminent recession, and wage growth that was solid enough without   triggering inflationary concerns,”said Curt Long, chief economist at the National Association of Federally-Insured Credit Unions.    10-year Trea sury note shed 2.2 basis points. Equities rise to   six month highs  amid strong economic data,   S&P+0.44%,   DOW  +0.18%,   NASDAQ  +0.58% 

JUNK BONDS REGAINED FAVOR as a risk-on sentiment prevailed against investment grade debt.  U.S. mortgage applications surge to levels not seen since October 2016 aided by a wave of homeowners refinancing.  Plummeting interest rates also led to the uptick in refinancing activity which increased 47.4 percent from the previous week. The 10-year Treasury note gained 4.7 basis points. S&P +0.2%, DOW-0.03%, NASDAQ +0.56% 

JUNK BONDS REGAINED FAVOR as a risk-on sentiment   prevailed  against investment grade debt.  U.S.   mortgage applications surge  to levels not seen since October 2016 aided by a wave of homeowners refinancing.  Plummeting interest rates also led to the   uptick in refinancing  activity which increased 47.4 percent from the previous week. The   10-year Trea sury note gained 4.7 basis points.   S&P  +0.2%,   DOW-0.03%,   NASDAQ  +0.56% 

UK HEADED FOR A DOWNTURN AS BREXIT WORRIES   NEGATIVELY   IMPACT SERVICES SECTOR. The PMI, a  barometer of the economy’s health   tumbled to 48.9 in March from 51.3 in February, inducing the sterling to dip to $1.3156.  “A stalling of the economy in the first quarter will create further   stress on the second quarter unless demand revives suddenly, which seems highly improbable with   Brexit looming,” mentioned IHS Markit. “In a no-deal scenario, both the EU and the UK would face a challenge of protecting their single markets,” mentioned   European Commissioner, Pierre Moscovici. The UK 10-year Gilt  increased   seven basis points.  FTSE 100, +0.23%,  STOXX Europe 600 +0. 91%,  CAC 40 +0.76%,  German DAX +1.68%.

INVESTMENT-GRADE DEBT EDGED OUT JUNK BONDS in net prices linked to actual trades.  U.S. Treasury yields slipped as investors turned bearish following Brexit reigniting fears of uncertainty.  The U.K. Prime Minister Theresa May will “request a further postponement of Brexit” seeking to break the standoff in Parliament.  Equities on Tuesday wavered upon investors fleeing to safe-haven assets. The 10-year Treasury note declined 3.6 basis points. S&P +0.06%, DOW -0.27%, NASDAQ +0.31% 

INVESTMENT-GRADE DEBT EDGED OUT JUNK BONDS in net prices linked to actual trades.  U.S. Treasury yields slipped as investors turned bearish following Brexit   reigniting fears of uncertainty.  The U.K. Prime Minister Theresa May will   “request a further postponement of Brexit”  seeking to break the standoff in Parliament.   Equities on Tuesday wavered  upon investors fleeing to safe-haven assets. The   10-year Trea sury note declined 3.6 basis points.   S&P  +0.06%,   DOW  -0.27%,   NASDAQ  +0.31% 

BANK OF ENGLAND TO EXTEND BREXIT LIQUIDITY AUCTIONS  UNTIL END OF JUNE, providing smooth   market conditions given Britain leaves the European Union.  “ The bank will continue to monitor growth  and market liquidity on a daily basis, and stands ready to take additional action if necessary.”  The EU has placed a series of   contingency measures  to deal with a no-deal Brexit; including a   temporaryrecognition of Britain-based clearing houses which processes multi-trillion euro   derivatives transactions.  The   euro fell below $1.12 as U.S. economic data outperforms expectations.  The pound fell half a percent after lawmakers rejected four   Brexit proposals. The UK 10-year Gilt declined   four basis points.  FTSE 100, +1.08%,  STOXX Europe 600 +1. 68%,  CAC 40 +0.41%,  German DAX +0.77%.