Markets

Friday's employment report was good news for the Federal Reserve, with fewer jobs created and a smaller rise in earnings, leading analysts to cautiously increase expectations that the hiking cycle is over.

Washington will auction $483 million in two tranches on Tuesday.

"The lack of standardization is a very real problem that impacts all facets," said Ted Chapman, managing director and investment banker at Hilltop Securities.

Triple-A muni yields fell 10 to 14 basis points while UST saw gains of up to 16bps out long as market participants consider a potential end to Fed rate hikes.

"The big question is: who's next? I don't think UBS is the end," said a veteran sellside market participant.

Large reserves will insulate states against downgrades in the near future, one rating agency says.

Municipals closed out October in the red, the third consecutive month of losses for the asset class.

While the FOMC statement will likely have very few changes, the post-minutes release press conference will be the wildcard.

The deal has new-money and refunding components and is expected to hit the market in a negotiated sale the week of Nov. 13.

The data indicates that 2023 could be "the potential start of a long-feared trend toward more higher ed impairments and, possibly, defaults," MMA's weekly Outlook report said.