Editor's Note: Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.
It was an even greater week if you were short Junk (JNK) and/or High Yield bonds on the other side of Long Treasuries. High Yield OAS Spreads WIDENED +28 basis points last week to +3.82% and are +46bps wider year-over-year.
The other yield on Credit Watch is the Italian 10yr Yield. With Global Yields lower on the week, Italian 10yr was UP +12 basis points to 2.68% and is +75bps year-over-year.
As a reminder, it would be different this time if USA enters an #EarningsRecession (not quite there yet with Q119 SP500 Earnings +1.69% year-over-year, but the toughest compares coming in Q2 and Q3) and Credit Spreads DON’T widen.