Market Update: As many market participants anticipated, on Wednesday, December 16th the Federal Reserve announced its first rate hike since 2006 increasing the fed funds rate to a range of 0.25% – 0.50%. Despite the news, municipal bond yields decreased during the fourth quarter with AAA 5-year, 10-year, and 20-year yields falling 2, 11, and 25 basis points, respectively. According to Bloomberg, the market is not projecting a rate hike during the Fed’s January meeting.

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