Muni yields rise to a more ‘normalized’ absolute range

Municipal yields rose as much as seven basis points in spots along the curve Tuesday as municipal investors rode the rapid rise in U.S. Treasuries and a volatile equity market as a time to move the asset class into a higher-yield environment. Triple-A benchmark yield curves cut levels by two to seven basis points. Selling pressure was felt across the curve, but most in the belly once again, where high-grade names were trading off, but bid-side depth was weak, traders noted. Municipals have not tracked directly with the UST moves, where the 10- and 30-year UST has risen 24 and 26 basis points, respectively, from Wednesday. Municipals have seen yields rise by 16 and 11 basis points on the 10- and 30-year, respectively, from Wednesday. Participants are waiting on month/quarter end calendar flip to react fully.
Source: The Bond Buyer