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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.

CHART OF THE DAY: Credit Watch → Italy - za1

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. 

CHART OF THE DAY: Credit Watch → Italy - CoD Credit Watch