Junk’s Bearish Market Divergence Continues

Junk bonds have bounced with Santa (nominal HYG, top panel), but have remained locked in downtrend all through the bounce.  Further, Junk vs. Investment Grade and long-term Treasury are still very bearish.  So an ongoing negative divergence to the US stock market remains firmly intact.

hyg.lqd.tlt

Disclosure: None.

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