Municipals yields fell for the third session in a row following the flight-to-safety bid in U.S. Treasuries as recession concerns continue to grow. Equities were mixed. Triple-A benchmark yields were bumped three to six basis points Tuesday with the strongest moves out long. Falling yields over the past two weeks have been “a welcome sigh of relief as we have seen yields as low as 0.67% back in February to as high as 2.97% back in April on 10-year notes,” said Jason Wong, vice president of municipals at AmeriVet Securities. “As we shift our focus from high inflation to a possible recession, we could see investors jump back into the fixed income markets” as recessions tend to be favorable to them “which will limit some of the losses we’ve had in the first half of the year,” Wong said in a Monday report.
Source: The Bond Buyer
