The municipal market was once again pummeled as financial and government systems around the world grapple with the growing COVID-19 pandemic.
The short end of the municipal curve was again down by as much as 25 basis points by some reads in the 1- to 5-year on Tuesday with sources citing confusion, dislocated pricing, and benchmarking as trades showed selling pressure on the short end of the curve as investors fought for cash.
Meanwhile, New York City may follow San Francisco and enact a “shelter in place” order within 48 hours, the Mayor Bill de Blasio said Tuesday afternoon, which will likely further disrupt the country’s financial capital.
The Federal Reserve Board moved to bolster confidence and liquidity in U.S. financial markets Tuesday as it established a commercial paper funding facility to support up to $1 trillion for the flow of credit to both businesses and households.
(Read more: The Bond Buyer)
