Municipal Perspectives

Municipal Perspectives

August 22, 2016

This week we are pleased to provide you a guest commentary from our friends at Court Street Group Research.  Their “Weekly Municipal Perspective” is the work of Matt Posner, Bob Donahue and Joseph Krist.

This past week, Treasury bonds stayed range-bound, giving up some ground on Tuesday and then improving post-Fed minutes on Wednesday. This lack of volatility has been par for the course over the last two weeks. Municipal benchmarks, did much the same as their taxable counterparts on light trading and and limited primary options. Bids-wanteds remain quite low and an uptick in inter-dealer trading activity is clearly the result of a lack of inventory-filling options. Most major deals saw strong demand, over subscription and…bumps as a result. An increase in sub 5% coupon trading beyond the 15- year range is the hallmark of this trading environment.

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Have a great week.