Municipal bond yields decline as market settles into sustained volatility

Municipal bond yields fell more than 15 basis points Friday, gaining back a portion of the pronounced losses from the past two sessions. The market is settling into what appears to be sustained volatility after more than a month of dramatic swings in yields.
In what used to be considered a normally functioning market, a 10 to 15 basis point cut or bump in one day in benchmarks would be considered quite drastic, but in the current context in which 50 basis-point daily moves have occurred, participants said benchmark weakness or strength to the tune of double digits feels almost steady.
(Read more: The Bond Buyer)