Interest rates

Municipal fund managers are betting on lower credit quality paper and lower coupon bonds as they take advantage of the swell in supply.

Bank of America Chief Executive Officer Brian Moynihan said the U.S. has no need for negative interest rates because its economy is strong, unlike other regions that have employed the tricky strategy.

Trade and geopolitical disruption will likely consume much of the policy narrative the rest of this week.

The firm attached a corrective action statement detailing changes to its personnel, compliance department and municipal trading desk.

With a tweet, President Trump has reopened the debate about negative interest rates.

For issuers coming to market, having a long AAA curve at 1.84% is their wish come true.

Short-term notes rose 17.9% in the first half of 2019 based on low rates, high demand, flatter yield curve and a backlog of projects.

Municipal and Treasury markets rallied one day after the Fed cut interest rates by 25 basis points and after President Trump declared more tariffs on China — all of which caused the 10-year Treasury to dip below 1.90%.

The municipal market got what it expected, when the FOMC announced its decision to lower rates.

Christopher Waller is a conventional choice drawn from within the Fed’s own ranks. Judy Shelton has spent decades outside mainstream economics. But both are expected to echo the president’s call for lowering interest rates.