European HY bonds paused this week, following a fresh bout of rates-induced volatility across assets, though primary loan markets powered on, buoyed by still-strong technical support.

“Two months ago markets expected rates not to go higher with few cuts priced for 2024, now this option is no longer the baseline. Everybody is in a wait-and-see mode,” an investor told 9fin. 

Meeting in Athens to celebrate Greece's resurgence, the ECB offered some relief by holding its key interest rates for the first time after 10 consecutive hikes, the longest streak in the bank's 25 year history. 

However, the move was widely expected and ECB president Christine Lagarde rapidly cut investors' enthusiasm for cheap money, saying in the press conference, “We're holding, it doesn't mean we won't hike again in the future.”