The Bond Buyer’s weekly yield indexes increased this week as the absence of an extension of the Build America Bond program in a new tax bill led to two consecutive mid-week routs that brought 20-year yields to a 17-month high.
“There’s been a lot of volatility this week,” Evan Rourke, portfolio manager at Eaton Vance, said Thursday. “There’s still a lot of confusion with BABs. Today they were dead, yesterday they were getting extended, the day before they’re dead, and so on. All in all, not a great week for munis.”