Junk Bonds: Risk Appetite Bounces on Support!
Junk Bonds: Risk Appetite on Support!
Credit markets have been buzzing — headlines warn of record outflows and panic rotation. But
HYG, the high-yield bond ETF, just told a different story.
What isHYG?
It tracks “junk bonds” — loans to companies with weaker credit. They offer high yields, but carry high risk. When investors are confident, they chase these. When fear hits, they dump them — fast.
The Chart Setup:
We've just seen a clean rebound off 75.72 — a long-standing “fear line” going back to:
• 2008 GFC lows
• Covid crash in 2020
• And now, 2025 macro tension
Zooming into the 1H chart (see inset), the rebound off 75.72 was sharp and orderly — not panic-driven.
Why it matters:
📉 Last week: $9.6B exited junk bond funds (20-year record)
💣
BKLN saw its biggest outflow ever
But technically? This support is still holding.
The message:
The market might be pricing fear — but not full-blown stress.
Break below 75.72? That changes everything.
Watchlist:
•BKLN – leveraged loans
•LQD – safer credit rotation?
•TLT – treasury flow = fear gauge
•
BTC 🟧 – Bitcoin as macro hedge again?
For now, risk appetite is hanging on by a technical thread. Let’s see if it holds.
One Love,
The FXPROFESSOR 💙
ps. things can change fast so we will monitor..alerts are ON
Credit markets have been buzzing — headlines warn of record outflows and panic rotation. But
HYG, the high-yield bond ETF, just told a different story.What is
HYG? It tracks “junk bonds” — loans to companies with weaker credit. They offer high yields, but carry high risk. When investors are confident, they chase these. When fear hits, they dump them — fast.
The Chart Setup:
We've just seen a clean rebound off 75.72 — a long-standing “fear line” going back to:
• 2008 GFC lows
• Covid crash in 2020
• And now, 2025 macro tension
Zooming into the 1H chart (see inset), the rebound off 75.72 was sharp and orderly — not panic-driven.
Why it matters:
📉 Last week: $9.6B exited junk bond funds (20-year record)
💣
BKLN saw its biggest outflow ever But technically? This support is still holding.
The message:
The market might be pricing fear — but not full-blown stress.
Break below 75.72? That changes everything.
Watchlist:
•
BKLN – leveraged loans •
LQD – safer credit rotation? •
TLT – treasury flow = fear gauge •
BTC 🟧 – Bitcoin as macro hedge again?For now, risk appetite is hanging on by a technical thread. Let’s see if it holds.
One Love,
The FXPROFESSOR 💙
ps. things can change fast so we will monitor..alerts are ON
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📣 Professor's Public Telegram:
💬 t.me/fxprofessor88
🌍🚀 CryptoGPT Trading Agent is the Future:
cryptogpt.io/
💹 Join My Forex Community:
fxprofessor.com/forex-special
💬 t.me/fxprofessor88
🌍🚀 CryptoGPT Trading Agent is the Future:
cryptogpt.io/
💹 Join My Forex Community:
fxprofessor.com/forex-special
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.