The muni market saw a frantic flurry of deals come in Thursday and the market got technically stronger, the secondary was active and new muni yield lows were reached in both the 10- and 30-year maturities.
“Before COVID-19 munis were already seeing a ton of demand and now we are seeing the extra, safe harbor and flight-to-quality demand with people moving money from equities to munis,” a New York trader said. “[The virus] isn’t going away anytime soon and now it is impacting the supply chain, which can only negatively affect equities.”
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Meanwhile, a New York trader noted that next week is shaping up to the biggest week all year in terms of issuance.
“We are looking at a huge week next week and there should be something for everybody and with yields at all-time lows, issuers will be kicking themselves if they don’t sell debt at this current levels,” he said.
(Read more: The Bond Buyer)
