Municipal bond prices declined in October continuing September’s price slide. Bond yields in the 10 year range increased slightly, approximately 4-5 basis points during the month. Recent elevated bond issuance levels coupled with waning demand should push bond yields to more attractive levels in the near term. The elevated new issue volume has been a […]
Municipal bond prices declined and yields increased during the month as the powerful bond market rally of the last several months subsided. This trend translated, generally, into negative monthly performance for most municipal bond investors. New issue volume for the month was light as it continues at a much lower annual pace than volume of […]
Municipal bond prices continued their move upward during the month translating into lower yields on new issues and current market offerrings. The bond price rally has been powerful over the last three months resulting in month end municipal bond yield levels that we have not seen in some time. Yields spreads are compressed across the […]
In response to the slowing recovery, the Federal Reserve announced yesterday that it would use yet another weapon in its arsenal to keep the economy from slipping back into recession. In addition to repeating its outlook of the last 17 months, that weakness in the economy will keep the fed funds rate at “exceptionally low […]
Moody’s recently announced it is changing its municipal rating scale to a uniform global scale. This change should occur by the end of April and will mean its municipal bond ratings will be directly comparable to the ratings it assigns to other bond issuers. We thought it would be helpful if we shared with you […]
Municipal bond yield levels ended December and the year at the lowest nominal levels in several decades. Elements of confusion In December of 1981, I completed the first year of my nascent municipal bond career somewhat confused by 12% taxable money market rates and near 12% non-taxable 20-year, “AA” rated bond yields. Last week, with […]
Municipal bond prices held up surprisingly well during the month, despite an increased supply of new municipal bond issues following months of low issuance. Municipal yield spread against Treasuries widest in two years The 10 year, “A” rated MMD Index bonds yielded 3.21% on November 30th versus the 2.07% taxable yield offered on the 10 […]
The municipal bond market showed more signs of progress in October, albeit unevenly – a persistent market narrative that creates opportunities for the disciplined and informed. State revenues growing despite property tax declines The macro economic picture for state governments generally continued to move in a positive direction as tax revenues saw double-digit growth (10.8%) […]
After August outflows, the municipal bond market turned bullish once again in September with four weeks in a row of bond fund inflows – and the last week more than doubling the inflows of the previous week. The month also saw a couple of true superlatives. Biggest municipal bond fund inflow in a year Municipals […]
The prevailing August municipal bond market story was the threat posed by the U.S. rating downgrade. The improving state tax situation and the search for better yields also led municipal bond market news in the past month. Wholesale municipal rating downgrades unlikely As we wrote in our market update The Effect of a U.S. Rating […]