The supply drought that has prevented the municipal yield curve from steepening further is a drought better measured in years than in dollars.

State and local governments’ willingness to wait out turbulent market conditions has left the Street craving “price discovery” — which could be accomplished by an onslaught of long-term tax-free bond issuance that forces underwriters to find the right yield that attracts buyers.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.