Advantage Data High Yield Bond Market Summary

RISK-ON SENTIMENT PREVAILED as high-yield debt outpaced investment-grade bonds in net prices linked to actual trades.  Treasury yields were pushed higher after the release of sound global economic data, in particular, China’s manufacturing index rose above 50 in March.  Crude oil soars to nearly a five-month high, settled up 2.51% or 61.65 per barrel.  The 10-year Treasury note advanced 1.0 basis point. S&P +1.08%, DOW +1.18%, NASDAQ +1.21% 

RISK-ON SENTIMENT PREVAILED  as high-yield debt outpaced investment-grade bonds in net prices linked to actual trades.   Treasury yields were pushed higher  after the release of sound global economic data, in particular,   China’s manufacturing  index rose above 50 in March.   Crude oil soars  to nearly a five-month high,   settled up 2.51%  or 61.65 per barrel.  The   10-year Trea sury note advanced 1.0 basis point.   S&P  +1.08%,   DOW  +1.18%,   NASDAQ  +1.21% 

BRITAIN AGREED WITH THE EU TO DELAY BREXIT FROM THE ORIGINALLY PLANNED MARCH 29 UNTIL APRIL 12.  A  further delay is imminent until May 22 “if the withdrawal agreement is approved this week,” House of Commons Leader, Andrea Leadson.  The  volatility of the crisis had led investors fatigued over uncertainty, creating an unstable market.  Britain’s financial regulators have given  European Union banks,  insurers and asset managers ample time to prepare for a no-deal Brexit.   Trade in a host of countries will take a hit creating import and export barriers if there is no  transition deal in place.  The UK 10-year Gilt decreased  one basis point.  FTSE 100, +0.50%,  STOXX Europe 600 +0.48%,  CAC 40 +0.83%,  German DAX +0.75%.

INVESTMENT-GRADE DEBT NARROWLY EDGED OUT JUNK BONDS in net prices linked to actual trades.  Equities failed to find a direction upon the release of revised GDP growth cutting the fourth-quarter growth to 2.2 percent from 2.6 percent, well below the 3 percent annual target.  Economists blame softer consumer spending and a decline in business investment from China, a result of the ongoing trade dispute.  The 10-year Treasury note advanced 1.4 basis points. S&P +0.39%, DOW +0.37%, NASDAQ+0.37% 

INVESTMENT-GRADE DEBT NARROWLY EDGED OUT JUNK BONDS in net prices linked to actual trades.  Equities failed to find a direction upon the release of   revised GDP growth cutting the fourth-quarter  growth to 2.2 percent from 2.6 percent, well below the 3 percent annual target.  Economists blame   softer consumer spending  and a decline in business investment from China, a result of the ongoing trade dispute.  The   10-year Treasury note advanced 1.4 basis points.   S&P  +0.39%,   DOW  +0.37%,   NASDAQ+0.37% 

EUROZONE ECONOMIC MOOD EASES MORE THAN EXPECTED IN MARCH, bodes ill for the first quarter. Sentiment in the eurozone weakened due to a bleaker outlook among  manufacturers and services. Businesses confidence continues to  suffer as the economic sentiment index settled at  105.5 points in March from  106.2 in February. Also, the business climate index, which points out the phase of the business cycle  declined to 0.53 in  March  from 0.69 in  February.  Global bond yields continued in a downward spiral trend on recession fears causing the  Turkish currency, Lira to contract 5 percent. The latest plunge in German bond yields  appeared to stagnate after a  vicious drop on Wednesday. The ECB is devising a plan to support side-effects of  negative interest rates.  The UK 10-year Gilt decreased  one basis points.  FTSE 100, +0.59%,  STOXX Europe 600 -0.10%,  CAC 40 -0.07%,  German DAX +0.09%.

THE TEN-YEAR TREASURY YIELD FALLS BELOW 2.4 PERCENT sending equities into free-fall before rising trimming losses prior to market close. Investors fear of a looming recession given the yield inversion however, “Based on history, we get another year and a half or so before recession”. In addition, markets pounder whether the Fed will cut interest rates this year in wake of wake economic data. The 10-year U.S. Treasury note sank 3.9 basis points. S&P -0.46%, Dow -0.13%, NASDAQ -0.63%