Among this week’s most notable moves was the decompression of high-yield credit spreads to near 9 month wides (and continued outflows). What went notably-under-reported by the mainstream media, however, was an even bigger selloff in US mortgage bonds. While JPMorgan is unable to see “any fundamental reason” for the plunge in prices, the worrying indication from the magnitude of the drop relative to volumes is that liquidity has evaporated.