US high-yield bonds led the way higher last week among the major asset classes, based on a set of representative ETFs. Although interest rates increased over the five trading days through Friday, the advance in investment-grade yields—Treasuries in particular—overwhelmed the higher rates in junk bonds. As result, the rate spread for high yield bonds less Treasuries (based on the BofA Merrill Lynch Option-Adjusted Spreads Index) ticked lower, boosting junk bond prices in the week just passed.
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