Munis were quiet on Monday, as U.S. Treasuries cheapened and equities ended lower.
Muni yields were changed up to two basis points, depending on the scale. UST yields rose up to four basis points, with the largest losses on the front end.
Early in the day, the
There is "a lot of nervousness in the Treasury market right now," said Tim Iltz, fixed income credit and market analyst at H.J. Sims, ahead of the meeting where the Federal Open Market Committee is expected to hike rates by 25 basis points.
The market has been bracing for the 10-year UST to reach the 5% threshold, fearing the implications for the broader U.S. economy. There will likely be lasting repercussions, Iltz said.
"We didn't get here by accident," Iltz said. "This is a result of a series of events, and those events, I don't see those unwinding. And so, the rationale behind the current yields, I don't see that dissipating."
