HY ETF’s And NFP

The HY ETF’s took a pounding today, both HYG and JNK were down over 1% on high volume.  The overall bond market seemed to hang in better, but we are still in that phase where people are reluctant to hit the bid as it gets lowered each time you check for a price.  HY17 outperformed today, down only 7/8%, but given the massive underperformance of late, that is only starting to catch up.

In the past 2 hours I have seen, heard, or read at least 10 things about how the market should bounce back nicely on Friday with NFP.  Just LTRO, how much of a strong NFP is already priced in?  After today’s move, there is definitely room for upside, but first we have to get through Greek PSI, but then it will be interesting to see if NFP really can deliver any upside since so many people are expecting it to.  Be careful waiting for NFP upside surprise, it seems like a very crowded trade.