Morning Commentary: High-yield market slides ¼ point-plus on more hot inflation numbers

By Paul A. Harris

Portland, Ore., Feb. 16 – The barrage of inflationary data inundating the U.S. capital markets since the beginning of the week continued apace on Thursday as the Bureau of Labor Statistics' Producer Price Index handily exceeded economists' expectations, and jobless claims unexpectedly fell.

The high-yield bond market dropped ¼ point or so in the wake of the data, according to a bond trader in New York.

With the Down Jones industrial average down 0.9% at mid-morning, the iShares iBoxx $ High Yield Corporate Bd (HYG) share price was down 0.61%, or 45 cents, at $74.42.

The bond prices of hospital operator Community Health Systems were mixed in the wake of its robust earnings report.

With the company’s stock (NYSE: CYH) up 40%, the CHS/Community Health Systems, Inc. 4¾% senior secured notes due February 2031 were up 3/8 of a point on the morning, the trader said, adding that other issues in the Community Health stack appeared unchanged or even a touch softer.

Among recent issues, the Hanesbrands Inc. 9% senior notes due February 2031 (B1/BB-) were down ½ point on the morning, changing hands at 101¼, the trader said.

The $600 million blowout deal priced late last week at par.

The primary market, which has been idle throughout the week, remained so on Thursday morning.

The active new issue calendar is empty.

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