Daily Note – How to handle a Fed rate hike

MI-CC082A_QMTRE_GR_20140330160906Summary

  • High Yield Spreads on the rise
  • Beware Bulls bearing gifts!
  • Look for the FOMC pop ‘n’ drop
  • Traders head for the pubs
  • Eurozone: Strong Industrial Production to begin Q4

Good morning,

All eyes are on the US this week.

High yield spreads continued to rise as Brent oil prices and the S&P 500 had intraday ranges of nearly 6% and 2%, respectively. The S&P 500 closed up 0.3% and Brent oil is trading almost unchanged. US 10y Treasury yields rose about 10bps and US high yield spreads rose over 15bps.

Oil is now trading around $38. High yield spreads were likely affected by news of further high yield fund redemption. The oil market is shot.

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GlobalMacro360 Daily Note 15th December 2015

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