The municipal market somewhat stabilized yesterday, as yields remain unchanged following a sell-off of up to 10 basis points in spots Wednesday that continued a week-long pattern of rising yields.
“We’re pretty flat right now,” a trader in New York said. “We’ve given back a lot of the gains we made the previous few weeks over the past week or so of rising yields, and perhaps now we’ve reached a point where we’re going to level off a bit. We sold off pretty heavily yesterday, especially in the 10 or so year range. Right now though, there’s some activity, but there’s pretty much no movement. It’s just totally flat right now.”