Municipal Yields Stabilization
Munis were steady to firmer in spots on Wednesday, with U.S. Treasuries showing little change and equities ending up.
"In theory at least, municipal yields should be able to stabilize here; levels remain attractive for pure income buyers while more sustainable constructive fund inflows are just enough to speak for rising issuance in the absence of meaningful reinvestment,"
said Matt Fabian, president of Municipal. The muni-UST ratios were:
- two-year: 66% (Municipal Market Data) and 67% (ICE Data Services)
- five-year: 64% (Municipal Market Data) and 65% (ICE Data Services)
- 10-year: 70% (both sources)
- 30-year: 90% (Municipal Market Data) and 89% (ICE Data Services)
Author's summary: Munis steady to firmer yields.