The Bond Buyer’s weekly yield indexes declined this week, as municipal bond prices rose in nearly all the week’s sessions.
“The market has been very strong. We’ve certainly seen strong bids for high-grade bonds, particularly in the 12- to 14-year range,” said Howard Mackey, president of the broker-dealer business unit of Rice Financial Products. “Uninsured paper is probably trading about five or six basis points off the [Municipal Market Data] scale. A lot of people just realized that munis are cheap now, but because of subprime, there’s still fear of pursuing lower-rated credits. However, there will be pretty good bids on bonds double-A rated and above.”