High Yield Bonds See Yields Continue to Rise

High yield corporate bonds as tracked by the S&P U.S. Issued High Yield Corporate Bond Index have seen yields rise about 56bps since month end May driving a negative total return of 1.38% so far for June 2013. High yield municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76% so far in June.  Duration is playing a key role as municipals are down more than corporates due to their longer duration.  The duration of the S&P Municipal Bond High Yield Index is 7.58 vs a 4.98 duration of the S&P U.S. Issued High Yield Corporate Bond Index.  The longer the duration, the more the prices will move given a change in the yield.High Yield Muni & Corporate Bond Index Yields June 12, 2013

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