Triple-A municipal benchmarks saw another seven basis point cut in yields on bonds outside of 10 years on Wednesday, pushing municipal to U.S. Treasury ratios higher amid sloppy trading and cheaper pricing levels on high-grade competitive deals. Municipal bonds could not ignore another rise in U.S. Treasury rates, Federal Reserve Board Chairman Jerome Powell’s congressional testimony and a resulting equity rebound, along with approval of emergency use of a new COVID vaccine and the likelihood of more federal stimulus. “The municipal yield curve continues to steepen, and refuge from significant price losses only exists at the very short end of the market at this time,” said Michael Pietronico, chief executive officer at Miller Tabak Asset Management.
Source: The Bond Buyer
