The municipal market experienced an enormous rally Wednesday, swiftly reversing from the pronounced sell off it had experienced over the course of several wrenching, dislocated trading sessions due to the effects of the coronavirus.
Municipal benchmark yields were lowered by 60 to 80 basis points (0.60% to 0.80%) across the curve. Some trades pointed to nearly a 1% bump on short-term paper.
… The Fed’s actions to buy short-term munis clearly is having a meaningful impact on this market.
(Read more: The Bond Buyer)
