Municipal Bonds Show Gains
Munis were firmer out long, with a favorable technical picture expected in November and December, according to Birch Creek strategists.
The muni-UST ratios were:
- 2-year: 67%
- 5-year: 65%
- 10-year: 70%
- 30-year: 90%
Birch Creek strategists believe "the wider new issue concessions brought about via the heavy new issue calendar will likely be rewarded."
Munis underperformed for the second consecutive week, with the front end seeing a 2-5 basis point cut for 2026-2029 maturities.
Author's summary: Munis show gains as technical picture improves.