Wolfe Research's Rob Ginsberg Says Bond Market Looks Worried as HYG Slips

According to CNBC, high yield bonds tracked by the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) are down nearly 1% this month, leaving the fund on pace for a third straight monthly decline and a fifth decline in the past six months. The S&P 500 is down more than 2% from its intraday record high in early June, while the 2-year Treasury yield reached a high above 4.3% last week and was around 4.322% on Monday. Wolfe Research technical strategist Rob Ginsberg said the bond market looks worried and wrote that HYG appears to be forming a topping pattern, with its March lows in play. CME Group's FedWatch tool shows traders pricing in a 34% chance that the Federal Reserve raises its overnight rate at this week's policy meeting, up from 16% a week earlier. Jessica Inskip, director of investor research at StockBrokers.com, said oil and rising short-term inflation expectations are helping drive the move in yields and making it difficult for stocks to push higher.