Muni Yields Rise Up to 7 Basis Points as Market Braces for $15 Billion Supply
Updated
Updated · Bond Buyer · Aug 17
Muni Yields Rise Up to 7 Basis Points as Market Braces for $15 Billion Supply
2 articles · Updated · Bond Buyer · Aug 17
Summary
Up to 7 basis points of cheapening hit municipal bonds Monday, with the biggest losses on the long end as traders marked yields higher.
A projected $15 billion of issuance this week drove the move, while U.S. Treasury yields also cheapened by 1 to 4 basis points and added pressure.
Chris Brigati of SWBC said demand, ETF activity, fund flows and reinvestment cash remain decent, but buy-side investors are not rushing to deploy cash.
Dealers are also looking to trim inventory, and Brigati expects muni yields to stay elevated through the week, possibly drifting another 1 to 2 basis points cheaper.