Finance

However, "a long-lasting bond market rally seems unlikely given major structural shifts of higher bond supply and on uncertainty with demand," said Edward Moya, senior market analyst at OANDA.

The firm will continue to do business in the competitive market.

"Despite the breathtaking selloff in longer rates, Barclays' macro strategists see no clear catalyst to stem the bleeding," Barclays strategists said. "Data are unlikely to weaken quickly or enough to help bonds."

The nature of municipal bonds is to help people, says Peter Hayes, "I really like that it's public purpose."

All eyes will be on Friday's report, though "it seems most leading indicators suggest job growth will remain healthy, which should keep the bond market selloff going strong," said OANDA's Edward Moya.

Municipal yields fell up to three basis points, depending on the scale, but underperform a better UST market.

S&P Global Ratings placed Maryland Heights, Missouri, on credit watch with negative implications because of bonds from a related authority for a hockey rink.

UST rates are driving all things in the muni market, said Jon Mondillo, head of North American Fixed Income at abrdn.

This comes as the firm shores up its presence in Texas.

There will be "choppiness in the municipal bond market through the end of the year," said Anders S. Persson, Nuveen's chief investment officer for Global Fixed Income, and Daniel J. Close, Nuveen's head of municipals.

The Bloomberg Municipal Index and High-Yield Index lost 3.3% and 3.9%, respectively, in September.

Dustin Avey and Jeremy Garber were named co-heads of public finance; Fairman, a 40-year veteran of the firm, will remain in an advisory capacity into 2024.

The last time muni mutual funds saw outflows top $1 billion was the week ending May 31 when they were $1.345 billion.

Bonds tied to Destiny USA in Syracuse were cut deeper into junk by Moody's Investors Service on doubts about its ability to extend an outstanding loan.

"The market has taken to heart the [Federal Open Market Committee] actions from last week," said Jeff Lipton, managing director of credit research at Oppenheimer Inc.

Fitch Ratings affirmed the city's AA-plus GO rating while bumping the outlook on certificates of participation sold for its city courthouse.

Yields have "risen substantially over the last week as the market seeks to find at least a minor level of balance or equilibrium," said Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities.