Munis were slightly weaker in spots Monday, with muni yields seeing smaller cuts than Friday, when inflation concerns led to larger losses in the bond markets to end the week. U.S. Treasuries were little changed and equities were mixed.
Muni yields were cut up to three basis points, with the biggest cuts out long. UST yields richened by up to two basis points at certain maturities.
This will be another week of heavy issuance, with an $11.8 billion new-issue calendar. Daryl Clements, a municipal portfolio manager at AllianceBernstein, said the heavy calendar means the muni market may see more volatility.
"This could be a good time to put cash to work, as issuance the week of Memorial Day will likely be much lighter," Clements wrote. "Investors need to be patient given the recent bouts of volatility and take advantage of the high yields being offered by the market."
