Fears about the COVID-19 virus continued to run rampant Tuesday, causing investors to resume selling off equities, resulting in municipal bond yields following Treasury yields down to all-time lows once again.
Muni were firm with a flattening bias along the yield curve following Monday’s price gains, according to Michael Pietronico, chief executive officer of Miller Tabak Asset Management. The gains “seemed to slow down the interest in the market today from participants who seem concerned with the low overall level of rates,” he said.
“We believe we are close to the bottom in yields and as such are more biased to buy defensive structures that perform relatively well should rates correct higher,” he said.
(Read more: The Bond Buyer)
