Interest rates

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.

The president said that European Central Bank President Mario Draghi would do a better job overseeing monetary policy in the U.S. than Fed Chairman Jerome Powell.

A day after the Fed held rates, the market was “fatigued” on the long end, while the shortend saw improvement after a more dovish tone from the FOMC.

The addition of the conservative pundit could signal the Trump administration's intent to have a more direct hand in central bank policies, yet Moore could experience his own transformation as a Fed governor.

Note issuance declined in 2018 as a result of tax reform, rate fears, and ongoing fiscal austerity sparked by state and local revenue growth.

The Federal Open Market Committee cut its projection for next year to two rate increases from three.

A lone large deal came into an even stronger municipal bond market, as all eyes are on the Federal Open Market Committee.

A few deals trickled into a stronger market, ahead of Wednesday’s interest rate announcement.

Market participants will focus on reading the tea leaves of the Fed statement Wednesday.

President Trump stepped up his attacks on the Federal Reserve Board and its chairman, Jerome Powell, blaming the central bank for declines in the stock market.

The board stands by its chief economist's conclusions after criticism from the Bond Dealers of America.

The MSRB should tread carefully in basing future research or rulemaking on its July study of secondary market spreads, BDA said.

Indications of a more hawkish sentiment at the Fed may continue to pressure tax-exempt yields higher, particularly on the short end of the curve.

Munis will see more than $5 billion of new supply, with the Federal Open Market Committee set to meet next week and raise interest rates again.

Scarcity mixed with strong demand and Fed announcements on rates and inflation helped munis outperform most fixed-income assets so far this year.