The municipal market rallied up to 7 basis points on Friday following Treasuries while equities continued to sell-off on COVID-19 fears as it spreads around the globe.
The muni 10-year landed at 1.09% and the 30 at 1.69%. U.S. Treasury yields plummeted as the 10-year hit the lowest since September at 1.47% and the 30-year hit an all-time low of 1.88% then moved up to 1.91% as of press time.
While COVID-19 has had an impact on all markets, including munis, Matt Fabian, partner and Municipal Market Analytics, said that he believes the virus impact is like the “fifth or sixth reason as to why muni yields are dropping like a rock.”
“There just continues to be more money than bonds and that is the fundamental reason for the sinking yields,” he said.
(Read more: The Bond Buyer)