A stubborn municipal market stood by Friday and watched Treasuries prosper in the face of financial fires erupting in Europe. The market is stuck in neutral, while the 10-year Treasury yield hit a new calendar-year low.
Retail muni bond investors aren't watching the news about Greek austerity reforms or Italian bank stress tests. And if they are, they're drawing the wrong conclusions, a trader in California said. They're not seeing how the Greek financial crisis has helped out the bond market. It's lost in translation, he said.