Signals point to retail return to munis, for now

Municipals were steady to firmer in spots Monday, while U.S. Treasuries strengthened inside five years but key parts of the curve remained inverted while equities ended in the black. Triple-A municipal yield curves were relatively stable, while the two-, three-, five- and seven-year UST were still sitting above the 10- and 30-year. More activity surfaced in the municipal market on Monday as the first full week of the second quarter got underway and after last week ended with more of a bid from retail accounts. “We have seen some pretty good situations coming out on the longer end; the maturities have a firmer tone compared to last week,” a New York trader said Monday afternoon. The overall appetite for municipal bonds, he said, picked up noticeably at the end of last week.
Source: The Bond Buyer