While the stock market holds steady for the moment, high-yield bond exchange-traded funds continue to fall toward 15-month lows, which may be a worrisome sign for Wall Street. “High-yield bonds are risky, and thus they tend to be more sensitive to changes in financial market liquidity,” Tom McClellan, publisher of the investment newsletter McClellan Market Report, wrote in a recent research note. That’s why high-yield bonds proxies tend to trade more like stocks than Treasurys, McClellan has said, so continued declines in junk-bond ETFs could be warning for more trouble for stocks. The SPDR Bloomberg Barclays High Yield Bond ETF [: jnk] is down 0.9% and the iShares iBoxx $ High Yield Corporate Bond ETF is shedding 0.8%, with both trading at the lowest levels since mid-November 2016, while the S&P 500 is down just 0.1%.
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From:: Stock Market News