The sterling high-yield bond market is facing its biggest test as three companies prepare to sell £600m (€981m) of capital this week.

Yell, the UK directory business, heads the queue and is expected to sell £375m alongside a tranche of about $200m (€230m). Investors said they expect bookrunner Merrill Lynch to announce a price range of 10.5% to 10.75% early next week.