The Bond Buyer’s weekly yield indexes were mostly higher this week, as a sell-off yesterday wiped out any lingering firmness in the long end and tempered the short-end gains tax-exempts had seen in the previous two sessions after the Federal Reserve’s 75 basis point cut of the federal funds rate.
“There’s total market dysfunction right now,” said Fred Yosca, managing director and head of trading at BNY Capital Markets. “For the week, we’re still firmer in the first five years for sure. After six or seven years, though, we’re not. But past 12 years or so, there’s literally no bid.”