Munis mixed — but mostly supported — by sanctions announcement

Munis were mixed on Monday, as U.S. Treasuries saw small gains and equities ended mixed after the United States announced sanctions against Iran and its trading partners.

Munis yields fell as much as two basis points on the short end but rose up to three basis points out long. UST yields fell up to four basis points.

The United States' decision to sanction Iran and the Treasury Department's plan to make additional asset purchases added a wrinkle to market participants' expectations, said NewSquare Capital senior fixed-income portfolio manager Kim Olsan. So far, markets seem happy with the government's moves, she said.

"Munis are feeling supported by that but still operating in our own world with supply coming and the Sept. 1 [redemption] money not being that large," Olsan said. This week, "the calendar is still large, but the mix of names is different enough, and across several rating categories, that I don't think issues will have a problem getting placed."