Munis Hold Steady as Yields Rise 3 Basis Points and Iran War Pressures Markets
Updated
Updated · Bond Buyer · Jul 20
Munis Hold Steady as Yields Rise 3 Basis Points and Iran War Pressures Markets
3 articles · Updated · Bond Buyer · Jul 20
Summary
Municipal bonds were little changed Monday, with yields rising by as much as 3 basis points even as broader risk sentiment weakened.
U.S. Treasuries cheapened by 4 to 5 basis points and equities closed lower as the Iran war kept investors focused on conflict risks and possible inflation fallout.
James Pruskowski of Hennion & Walsh said the muni market was effectively paused rather than repricing, with valuations still searching for footing amid the geopolitical uncertainty.
Strong technicals are still supporting the sector, he said, as heavy new issuance continues to meet solid demand and should help upcoming deals find buyers.
The move follows an earlier rise in the U.S. 10-year Treasury yield to 4.57% as escalating U.S.-Iran tensions pushed investors to reassess growth, inflation and policy expectations.