Energy junk bonds still look cheap despite their recent rally. Spreads on high yield bonds index tightened 20 bps since Aug. 19, led by a 52-bp tightening from energy bonds. The chart below shows the spreads of bonds in the Bloomberg Global High Yield index compared to the median of their peers. A bond that traded in line with the median of other bonds of the same rating would have a score of 1.0. Higher than 1.0 indicates that the bonds trade wider.