It's hard to argue that the modest fall
in junk bond prices suggests that a larger correction is imminent.
Also, the default rate may reach or exceed the previous peak in 2002 if the economy remains weak, suggesting major declines
in junk bond prices.
But in an environment like today
when junk bond prices are at all - time highs, there is no justification for maintaining artificially low real rates.
Junk bond prices have been setting lower lows (pushing up yields) since July.