Municipal Bond Yields Hold Within 1 Basis Point as Conflicting Iran Talk Reports Whipsaw Markets
Updated
Updated · Bond Buyer · Jun 1
Municipal Bond Yields Hold Within 1 Basis Point as Conflicting Iran Talk Reports Whipsaw Markets
2 articles · Updated · Bond Buyer · Jun 1
Municipal bond yields were little changed Monday, moving by no more than 1 basis point even as reports first said Iran had suspended U.S. talks and later said negotiations were continuing.
Trump's midafternoon post that talks were advancing at a "rapid pace" helped lift stocks to record highs and trim some Treasury losses, but munis largely ignored the intraday swings.
Traders said last week's rally tied to peace-talk hopes had been premature, and with more than two dozen deals above $100 million due this week, holding steady would already be a solid outcome.
Portfolio managers said the Iran war may be supporting muni demand because the sector is less exposed to geopolitical shocks than Treasuries or equities and still offers attractive tax-equivalent yields.
That resilience now faces a heavy June supply calendar, though broad deal dispersion and ample reinvestment cash are expected to help the market absorb the volume.