Municipals finished out a nerve-wracking week on a strong note, with yields falling by as much as nine basis points on the short end while U.S. Treasuries strengthened and equities came under pressure. As holders of bank stocks headed for the exits and muni investors looked on nervously from the sidelines as the Federal Open Market Committee met this week, bonds have seen renewed interest as the idea of safety suddenly became uppermost in eyes of buyers one again. The muni market started off the week on a quiet note, with action subdued in both the primary and secondary ahead of the Federal Reserve meeting on Tuesday and Wednesday. After the Fed raised rates once again, the market remained calm.
Source: The Bond Buyer
