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High-yield ETF falls to two-month low as Wall Street sinks

NEW YORK (Reuters) - The price of the iShares iBoxx High Yield Corporate Bond exchange-traded fund HYG.P on Monday morning fell to its lowest since July 17 as Wall Street sank on concerns the U.S. economy will be hit by new coronavirus lockdowns and the inability of Congress to pass further fiscal stimulus.

The high-yield bond fund fell to a low of 83.39 in mid-morning New York trade. It was last down 0.87% to 83.56. The price of high-yield debt falls when the risk of corporate defaults rise. The market’s moves immediately precede, or fall in step with, those of the stock market.

Reporting by Kate Duguid; Editing by Chizu Nomiyama

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