Here's the New York Minute.

The Hunt For Yield continues.

We've had a quiet day on US stock markets

but elsewhere there's been a lot action, both the Nikkei 225

and the German DAX index are at new highs for the year,

having rallied more than 20% from their lows.

But that's nothing compared to what we've seen in bond markets, most spectacularly in the UK.

Where, as you can see,

the long dated gilts is one of the strongest performing securities anywhere in the world.

Now when bond markets performing like that,

it has an effect on US credit.

If we take a look at the Moody's Baa corporate yield,

this is the rate at which the largest, strongest, US companies can borrow,

It's near 60 year lows. Which explains why so many of them are taking the opportunity to releverage.

Similarly, if we take a look at the performance of the largest ETF holding

high yields or junk bonds,

it's at a new high for the year.

When people are worried about yields,

they start worrying much less about risk.

And that's the New York Minute.