Munis saw small gains in spots, continuing the week-plus-long trend of continued strength, as long-term U.S. Treasuries were a touch firmer and equities closed higher.
The market remained in the more attractive range that began last week. The yield curve adjusted lower every day last week, drawing strong inquiries to dealers, "especially in the 10-to-15-year space that had been hit hardest in March," Birch Creek Capital analysts reported in their weekly market commentary.
"We continue to favor the [investment-graded] portion of the market as both absolute and relative yields are at the most attractive levels of the year, the weaker spring technical period will soon give way to a seasonally strong summer, and the strong credit quality and essentiality of the asset class should provide a nice tailwind if a prolonged war and high oil prices derails the economy further," Birch Creek strategists wrote.
