Global spread on junk bonds is about to move lower which should lead to a positive risk-on environment

There’s a gentle risk-on tone in the credit market today, as there has been for much of the past two weeks. That means that the spread on the Bloomberg Barclays Global High Yield index has fallen and broke its January trendline. Junk bonds have started the day tighter, led by Russia. Russian debt drifted sideways yesterday, but it’s rallying today.