Municipals finished strong Monday as short-term yields again fell to record low levels while long-term bonds steadied. Yields on the short end are now lower than before the March sell-off. The 10-year is creeping lower to fall below 1% while the short end is lower than 0.40%. Benchmarks fell by as much as seven basis points again on the short-end of the curve as the Federal Reserve Board’s Kent Hiteshew spoke to the Government Finance Officers Association and said the Municipal Liquidity Facility is “open” for business while Illinois said it was considering using it for a $1.2 billion note deal.
(Read more: The Bond Buyer)
