Europe's troubled high-yield market is expecting a rally in bonds from the technology, media and telecom sector after Tuesday's surge in Nasdaq stocks.

Europe's high-yield bond market, dominated by TMT companies, has shadowed Nasdaq for much of this year. Nasdaq shot up 10.5% on Tuesday on the back of indications that US interest rates will remain steady this year, possibly rising in the first quarter. High yield officials have been discussing how the market would react.