Municipal benchmark yields were five to 10 basis points lower Friday, extending the market’s recent rally through the end of the week.
The municipal market has weathered an unprecedented, volatile month during which the market swung from record-low yields to a 200-basis-point selloff before erasing much of the losses as the impact of the coronavirus ravages the global economy.
The virus led to unprecedented Fed interventions in the markets. For the first time ever, it will buy VRDNs and short- and long-term municipal bonds — a move the Fed did not even consider in the 2008 financial crisis.
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The Federal government will provide $2 trillion through a stimulus package passed Friday that will give direct cash payments to governments, industries and individuals to attempt to prop up the U.S. economy.
Read more: Bond Buyer.
