Global risk markets traded with a positive tone Monday on expectations that Centrist Macron will defeat Eurosceptic Le Pen in French’s final presidential election, securing a victory for the global status quo. High yield traded at a six week high, pushing the yield to worst and spread on the Bank of America High-Yield Index tighter by 9bps each to close at 5.68% and +386bps, respectively. While no new deals priced Monday, four new deals for $1.55 billion were added to the calendar. In commodity markets, both WTI and crude closed lower on expectations of growing US supply. WTI closed at $49.23, down 0.8%. This morning markets are opening with a strong tone again, with US equity futures and WTI trading higher, while high yield is generically stronger by ¼ of a point. The focus will shift away from macro to micro this week and moving forward as Q1 earnings season kicks into full gear.

The Bank of America Merrill Lynch US High Yield Index monitors the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.  Index data sourced from Bloomberg. Yield referenced is the yield-to-worst and spread referenced is the spread-to-worst.