“There is a lot of money on the sidelines going to work on new issues,” a New York municipal manager said. However, a lot of the demand is intermediate and long focused. “It’s still a challenge in the front of the market with the low yields. Once you get to below the 0.20% level you lose retail,” he said. … And rates should not rise anytime soon, as inflation should remain “subdued” this year, although higher than it’s been in a while, according to Ned Davis Research Senior U.S. Economist Veneta Dimitrova. The firm expects inflation to rise about 2.2% this year, despite a “temporary spike” in the spring as a result of the effects of the COVID-19 pandemic on inflation last spring.
Source: Bond Buyer.
