High-Yield Bond Rally Heads for Seventh Week on Europe Stimulus
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Junk bonds are rallying for a seventh week, the longest streak since January, amid confidence that European central banks will maintain stimulus measures even as the economy emerges from recession.
The extra yield investors demand to hold speculative-grade securities rather than government debt declined 12 basis points to 382 basis points this week, according to Bloomberg bond index data. The spread has narrowed 62 basis points this year, the data show.