All of The Bond Buyer’s weekly yield indexes rose this week, as bond prices declined consistently throughout the period.
“The market continues to act a bit nervously about how low yields are,” said Matt Fabian, managing director at Municipal Market Advisors. “There has been some difficulty in bringing bonds in the primary market at the market’s aggressive levels. There has been a fair amount of gains taking in the secondary market and that has been widening out spreads. At some point, the weakness in the primary could translate into weakness in the secondary. It looks like there is some momentum for a correction in the near term. So unless something happens to justify or reinforce current levels, the more likely scenario is a modest correction in yields.”