Municipals sold off Wednesday, with triple-A benchmarks being cut up to 12 basis points across the curve, while U.S. Treasuries strengthened on the front end but the long-bond hit year highs and equities ended in the red. The Federal Open Market Committee meeting minutes show “the doves have left the building,” said Edward Moya, senior market analyst at OANDA, after the FOMC announced it expects a $95 billion per month balance sheet reduction, with analysts forecasting announcement and reduction beginning in May. “The Fed is worried about inflation spreading and that suggests they will remain aggressive a while longer even when growth concerns start to emerge later in the year.”
Source: The Bond Buyer
