Market Insights
Our latest insights on bond market activity
MUNI Market Insights: Rising Yields, Postponed Deals & Market Shifts
As we have been discussing, we are now seeing deals get postponed with the spike in yields. This week, a 1.15B high-yield MUNI bond deal was postponed for a Wisconsin issuer, along with others. I suspect you will see more deals get pulled as should yields continue to...
Video: Does Volatility Present an Opportunity to Muni Bond Investors?
Duration: 3:10
Transcript: Volatility is generating an opportunity. If you are looking to put money to high grade securities, if you’re looking to protect your wealth, or if you’re looking for tax advantage type stuff, it might be a good time to take a look at munis.
Video: Should You Worry About the Possibility of Tax Exemptions Going Away?
Duration: 2:24
Transcript: If we have an exemption that goes away, Municipalities would have to compete against say corporate bonds as an example. We’ve been asked a lot about tax exemption on municipal bonds.
Read our latest musings about actions and events affecting the investment landscape.
Yields Surge After Strong Jobs Report as Fed Concerns and Market Pressures Mount
T yields are at their highest level since 11/2023 after the jobs data this morning came in stronger than forecasted. 10T added 10bps in a matter of minutes, and the 2-year surged 12bps.
As anticipated, the Fed lowered interest rates by a quarter point
The Federal Reserve, in a move that was largely anticipated, lowered interest rates by a quarter point today, bringing the target Fed Funds rate range to 4.25%-4.5%.
We’re watching for credit quality in education and renewable energy sectors
U.S. wholesale prices remained inflated in November, signaling a stall in the fight against inflation.
The Fed’s Beige Book report indicates flat employment and low worker turnover
The number of new applications for unemployment benefits increased moderately last week as the labor market seems to be cooling a little. According to the Labor Department, the number of claims filed rose by 9000. These claims are still consistent with a growth...
Historically, November has been a strong month for Muni returns
After a successful month of underwriting, investors have shown a strong appetite for municipal bond issues. This week, with the Thanksgiving holiday, the calendar was light. Looking ahead to December, there should only be two heavy weeks of trading with the Christmas...
We believe we will see continued pressure on yields to increase
The 10-year is trading at 4.40% this morning. We believe we will continue to see pressure on yields to move up.Boston Fed President Susan Collins supports further interest-rate cuts with a cautious approach to avoid moving too quickly or too slowly. She described the...
Post-election investors react similarly as they did in 2016
The 10-year Treasury is trading at 4.39% this morning as of 11/07. We saw high cuts yesterday, +17bps on the long end, the highest move we have seen in a long time for one day.
Municipalities capitalizing on lower rates rush to market before year-end
Municipalities capitalizing on lower rates and a rush to market before the year-end have created a heavy underwriting calendar for the second week. Also, municipalities have not had to come to market as often in the last few years due to COVID-19 funds.Levels this...
Market News & Commentary – 10-24-2024
The question on everyone's mind right now is, how high will yields go, and "why" are they moving up? We have been discussing several attributes that are creating this pop in yields: supply, Eco numbers, the Fed's decision for November, and Elections. We will touch on...